i've put this off long enough. i'm definitely gonna call about the colonial penn program. >> it good morning everyone, it's sunday july 31st, i'm gretchen carlson. thank you for spending part of your sunday morning would yous. word of a deal between john boehner and the president? and harry reid gets left in the dark. soon, reid won't be the only one a little upset. >> the soldier accused of plotting another massacre at fort hood was ready to roll. and uncovering the items in the arsenal, you've got to see it to believe it. >> he took her job and she holds a grudge, and john

boehner is evil. >> when he did have the vote, he chose to go to the dark side. let's bring -- he chose to go to the dark side. >> all right, we've got it. >> did she just call him darth boehner? "fox & friends" starts right now. ♪ >> welcome, everyone. by the way john boehner has been called worse. with a name like boehner he's been called worse. could we have a deal? welcome everyone, we're here on sunday because it could be a big day for our whole entire country. >> and the news is whether we've got a deal or not. shortly after ten o'clock last night. harry reid said you know, i was going to have everybody show up in the mid feel the night and take a vote at 1 a.m. and he received word from

the white house that apparently, the white house and this really hacks him off, you know, because it kind of bypasses him, and former speaker pelosi, dealing directly with mitch mcconnell, joe biden 6789 it sounds like they've got a deal, and close to a deal and some of of the frame work as well to talk about it. yeah, it looks like it's been going back and forth and take a look, it looks like debt ceiling increase, 1.2 trillion to 2.4 last night last through the night and living in my office, as high as 2.8 trillion dollars in debt ceiling increases, spending cuts have to be about the same amount commensurate. >> dollar for dollar. >> at least if not more. >> and guys, there's a little bit of wrangling whether or not that balanced budget amendment that john boehner needed so badly to get the house to vote for his, his plan, he will, that was in the

senate plan for a while and it may be coming out. >> my understanding they only have to vote on it, but in the senate would be voted down. >> of course. >> just the fact because highered went-- after he received that bill determined not to have vote on it, that's sort of a political gimme, that doesn't mean that you pass the balanced budget. >> i think the way that it is explained very well, i think in the national journal this morning, and that is there would also be this super committee. and what they would do is beyond in first phase of cuts, if the president's going to get more the super committee has to come to realization and agreement on what they're going to do. if they can't come to an agreement and this is incentive for the republicans, then the balanced budget amendment would go to the states. >> right, that would be fantastic. however, we're hearing triggers now, also, so will it be a balanced budget amendment. >> they'd be part of the triggers, so that would incentivize the democrats to

go ahead and you know, vote for the cuts. and what we really need to understand here, we're talking about raising the debt ceiling almost 3 trillion more dollars, that ends 3 trillion more spending. >> you're incorporating cuts to make up for the the 3 trillion, you're not starting to talk about cuts into entitlements, this is not going to get too much in the issues, we're not going to digress into that today. let's listen to harry reid. >> the issue has been now for a week or so. if the joint committee doesn't come up with the result, what should happen and we've been willing to say that we're happy if we don't arrive at the budget goals, with the joint committee that certain things should happen. we've been willing to say that there could be a s

sequesteration. as long as they don't turn their head away from the american people and shared sacrifice. >> while the trigger is not exactly clear, we know that super committee can't come to an agreement, the trigger would be cuts to the pentagon, which republicans don't like, and cuts to medicare, which democrats don't like. >> did you hear that, he slipped that in there. it has to include revenue and moved it on quickly and-- >> one interesting thing, where is the president going to come out on this? because as recent as five days ago, six days ago, he kept saying that any deal had to have revenues and it had to be a long-term deal. so, now you're going to go bakken, what did you mean by that, mr. president, if you agreed to this. in the meantime, budgets were shocked when mitch mcconnell came to the microphone yesterday afternoon and said yes, we might have a deal. >> i'm confident and optimistic we're going to get a deal in the very near future

and resolve this crisis in the best interests of the american people. let me just add, you know, our country is not going to default for the first time in history. that's not going to happen. i think we have a level of seriousness with the right people at the table that we needed and thought she'd had as the speaker indicated last weekend. we're going to get a result. >> the seriousness at the table, apparently it's that guy right there, mitch mcconnell on the phone with joe biden. it's between them and their staffs and they're the ones who have hammered this out where they say significant progress has been made and we may be close to a deal. >> let me ask one question, let's say they do come to a deal, doesn't it have to go bah to the house for a vote. >> absolutely. >> it doesn't mean it's a done deal. the house didn't like the original boehner plan that this is looking more like. will they get enough votes in the house even if they come to

a compromise with the president today. i'm not sure we can say it's done necessarily. >> in the house you'd have open democrats voting for it and then mr. boehner yesterday, apparently convened what is called the tuesday group, which is 40-- you haven't heard about tease device, it's 45 moderate republicans and they've all been dialed in on the steps along the way and so, apparently they are all, we don't know if they're all on the same page, but at least they're all of the same idea that something has to get done. >> what about thursday, the original boehner plan was going to be voted on and they delayed it, delayed it again and then friday, finally friday afternoon they voted on the boehner plan and it passed because they added the balanced budget amendment and wouldn't have passed without it. fast forward they send it over to the senate. the senate plans around the reed plan, biden plan, mcconnell/biden plan. it looks like the original boehner plan that didn't pass

the house because it didn't have the balanced budget amendment. if that's the plan that mcconnell and biden come up with and send back to the house, they're not going to get the steve hardy, who didn't vote for it until the balanced budget amendment was in it? but will they get enough democrats. >> and around, i mean, this is pulling the wool over america's-- absolutely pulling the wool over america right now saying look we're going to figure out a way to get this thing in there without the spending cuts because the spending cuts happen under balanced budget. >> they've got to do something. the white house has created a sense of crisis and chaos. tick, tick, tick, the meter is running or else they're going to throw grandma over the cliff. >> and i heard on the radio,

dead-geddon, armageddon, debt-geddon. >> and admiral micromullen has been concerned about the troops and whether they would be one of the first in line to be affected. >> as we move into a change... we're pretty focused, the people who are already in the military. >> okay, that's clear, isn't it? so there he was, he was making his 15th trip to afghanistan and it was while he was over at camp leatherneck that the marines asked him, okay, if there are a bunch of pentagon cuts, how is that going to affect our equipment and stuff like that. and wherever he has gone so far during this particular swing through the country of afghanistan, the troops are saying are we going to get paid? and he's saying, i don't know. just know this whatever you are owed you'll get paid eventually.

you know, and this is how this works down. if we do, talking about if we go into a debt ceiling where we can't pay our bills technically which i don't agree with anyway, let's say, the president has the tablt to decide who gets paid when. clearly the debt is going to get paid first. china and saudi arabia are paid before our military, as bad as that sounds, that has to happen, so our borrowing costs don't go through the roof and then pay the military and social security, and if you dodonn tt order, give the department of education money first, it's the president's fault. it's not congress and senate, it's up to the president, almost like a technical bankruptcy of the country. >> sure. >> moody's says that if the federal government, let's say on tuesday we don't raise the debt limit by then, moody's says that essentially, if they pay the principal and interest, as we as a country

pay the principal and interest on the debt we will not have a technical default so we won't have the default. we might wind up with-- >> debt-geddon. >> decrews in our credit rating. >> i don't think so, they'd be out of their mind, to decrease the credit rating. the whole world, the global economy would go into flux if the u.s. debt is downgraded. >> moody's says they've got to cut by 4 trillion dollars, but we're not close to that. >> and the guys that-- >> the guys who got us into the financial problems. >> i was going to say that, once i figured that out and brought back the equation into my heads. how much do they pay attention to the credit ratings. >> i'm going to be called out for being a conspiracy theorist, moody's sat down before boehner's plan was signed and stuff went on, with the g.o.p. freshmen who are heavily tea partiers. now, moody's says we are going

to sit down with you and talk about this debt problem. why would they do that? why wouldn't they sit down with the house complete leadership. >> politics. >> leading on tea party to roll. there's something going on behind the scene. i don't know if moody's is talking to the white house or biden saying, we'll do this, but clearly moody's, let's put it this way. would he won't downgrade the u.s. debt. >> the former speaker of the house, still the dominant leader of the democrats in the house. yesterday, very upset at john boehner and she went to a famous character in the movie. >> the speaker chose when he didn't have the votes, instead of to reach out in a bipartisan way, to see how we could work together, he chose to go to the dark side, let's bring-- he, let me repeat, and i

repeat, he chose to go to the dark side. >> the dark side. could it possibly be she's referring to that guy luke skywalker's father, darth vader, could it be? >> she' talking about all the tea party republicans, in other words, saying that he in order to get the bill passed had to go to the dark side of the tea party movement to include that balanced budget moment. in simple terms, what do we teach our kids about money growing up, to increase debts and not pay off our bills, and spend and spend and spend. or if you spend a dollar, you have to earn a dollar. if you start to break this down simply, it starts to make sense. >> and how is you know, going to eye raub bah, 60 house members the dark side. they represent a big portion of the country.

they were elected for a reason. they were elected on smaller government, no new taxes and cutting spending. dark side? it's becoming ingrained in american politics the tea party. >> there was a landslide election last november and we've heard that elections have consequences, well, madam speaker, this is one of the consequences. and love them or hate them, they stand on their principles. and i just saw harry potter, maybe the dark side-- >> these are characters i need to learn about. headlines, while were you sleeping, a deadly attack in afghanistan, a bomber blew himself up in the city of lashkar gah. at least 12 were hurt. the taliban claiming

responsibility. and four people have died after two small planes collided mid air. it happened near tracker creek, alaska. you're looking at one of the planes, completely destroyed after it hit the ground and burst into claims and the other plane was damaged in the collision and did not hit the ground. the pilot is the the sole survivor, he surveyed the other plane's wreckage from the air and saw no signs of life and managed to land safely in anchorage. no word what caused that collision. being called a miracle, a caribbean airline jet flies off the runway and splits in after in the country of guyana, the flight at jfk slid off the runway and stop short of a deep reconvenient before breaking into two. 30 people were hurt and none of the injuries are life threatening. and they're looking into the possible cause of the crash. nobody responded to this crash, no ambulances, no help.

it was a sight to see in cedar rapids, iowa, hundreds gathered to match the implosion of a parking garage. it went down in seconds and filling the streets with dust and depre, 75 million dollar convention center and those are your headlines. >> all right. that's in iowa. now, let's go out to ohio and find out, at the 158th annual ohio state fair and there he is in front of a horse, rick reichmuth. wait, rick, that's no ordinary horse, is it? >> good eye, steve, it's the clydesdale, i didn't realize that ohio has a big budweiser brewery and they have clydesdale. this guy is levy, that guy is mike, but i think we're more interested in levy, and getting up this morning. there you go. we are going to talk about the weather. and we are going to talk about the weather this morning and a lot going on, especially the heat and take a look at the

weather map. levy likes it except parts of the plains and 87 degrees at dallas, texas. it's five o'clock in the morning and it's 87 degrees, they've had 29 days straight over 100 degrees and probably breaking reports. this week is going to be the hottest they've had yet. getting up to around 110 and get ready for more heat. take a look at satellite picture, the northeast today will be looking absolutely beautiful. we'll see lots of sunshine and the humidity is gone again. so that's going to be a nice relief, but the southeast extremely the hot and muggy and a lot of thunderstorms fire as the day continues on and the day heats up. out across the west, four corners, monsoonal showers and in the afternoon hours and some of that making its way into california and nevada, also. take a look at the high temperatures today for the day. the heat brewing across the central part of the country again. 96 in rapid city and 98 in kansas city, dallas, get

ready, 104. so, unfortunately, guys, all of the heat we've been dealing with is still going to be there, right now, back to gretchen and lots more coming up in the ohio state fair all morning long. >> have a lot of fun, rick. as washington hammers out a deal to end the debt crisis, how will it break down for us? a lot of people are saying even if we have a resolution, we still might be downgraded. so let's take a look how that affects the regular folks out there. first of all, with regard to mortgage rates, car loans and credit card rates? >> the immediate impact, according to economists if we get the credit downgrading, s & p is saying if we don't cut a minimum of 4 trillion they're going to downgrade us. once the u.s. debt is downgraded or credit worthiness is downgraded and causes interest rates to go up not only for the u.s. a 30 year fixed mortgage interest rates could go 1/2 to full percentage points.

car loans, 1/2 to full percentage point and your credit card would go up, but that would take 45 days. and the people who lend us money don't seem to worry about this. interest rates dropped back down a little bit and spoke to a friend of mine this morning. >> so you're saying just immediately, they can do that, they can increase the rate or are some people grandfathered into lower rates. how would that work? >> if you're fixed into your mortgage you're safe. an adjustable rate mortgage or line of credit that fluctuates with the prime rate, you're going up and borrowing costs. >> let's look at the impact. big red question marks we have november idea what's going to happen to the money that we're apparently saving up to retire on. >> the only honest answer what, will happen on august 3rd if we get the credit downgrade on the 2nd.

usually in these worry periods investors run to u.s. treasuries. where do you run? some people say you go back in the stock market and i think people like eric would say gold is not a bad place to be although i don't think he's buying gold or park some of your money off to the side. what will happen when people run out of the stock market? no one can tell you yet, that's what would happen. >> we'll wait and see on that. what about pension funds and money market funds. what might they have to do. >> the credit downgrading, triple-a, s & p keeps saying they're going to downgrade us so some of the funds are required by law to only hold triple-a reported short-term u.s. treasury so that would potentially cause a lot of the pension funds, some money market funds to dump their treasuries on the market and sell them. drag down prices and interest rates go up, it would have that effect.

a lot of xhifrts are saying, as long as the fund or pension is assured they'll receive their interest payment on the note. no need to sell it therefore they wouldn't have to dump them. >> you're going to be working over time, adam. >> we all are. >> thank you for coming in bright and early. >> my pleasure. >> let's go back to the curvy couch. >> gretchen, china pays a lot of our bills and did we seriously just cut them checks for 90 million dollars? yes, and wait until you find out for what? and inside arsenal, the soldier charged with plotting another mass in fort hood had a weapon of choice and he was read to roll. >> and an airport security shake-up, soon the tsa will be able to single you out for questions. it works in countries like israel, but what about the u.s. of a? [ malannouncer ] imagine facing the day

with less chronic low back pain. imagine living your life with less chronic osteoarthritis pain. imagine you, with less pain. cymbalta can help. cymbalta is a non-narcotic treatment that's fda-approved to manage chronic musculoskeletal pain. one pill a day, every day, can help reduce this pain. tell your doctor right away if your mood worsens, you have unusual changes in mood or behavior or thoughts of suicide. antidepressants can increase these in children, teens, and young adults. cymbalta is not approved for children under 18. people taking maois or thioridazine or with uncontrolled glaucoma should not take cymbalta. taking it with nsaid pain relievers, aspirin, or blood thinners may increase bleeding risk. severe liver problems, some fatal, were reported. signs include abdominal pain and yellowing of the skin or eyes. talk with your doctor about your medicines, including those for migraine,

or if you have high fever, confusion and stiff muscles, to address a possible life-threatening condition. tell your doctor about alcohol use, liver disease, and before you reduce or stop taking cymbalta. dizziness or fainting may occur upon standing. side effects include nausea, dry mouth, and constipation. [ male announcer ] ask your doctor about cymbalta. imagine you, with less pain. cymbalta can help. go to cymbalta.com to learn about a free trial offer. energy is being produced to power our lives. while energy developement comes with some risk, north america's natural gas producers are committed to safely and responsibly providing decades of cleaner burning energy for our country, drilling thousands of feet below fresh water sources within self contained well systems

and using state of the art monitoring technologies, rigorous practices help ensure our operations are safe and clean for our communities and the environment we are america's natural gas. excuse me? my grandfather was born in this village. [ automated voice speaks foreign language ] [ male announcer ] in here, everyone speaks the same language. ♪ in here, forklifts drive themselves. no, he doesn't have it. yeah, we'll look on that. [ male announcer ] in here, friends leave you messages written in the air. that's it right there. [ male announcer ] it's the at&t network. and what's possible in here is almost impossible to say.

>> welcome back on this special sunday edition of "fox & friends." let's talk a little about this. the national institutes of health, nih does a lot of really good work and let's face it, like a lot of other government agencies they've spent a lot of money in crazy ways and spent like a half a billion dollars on bizarre projects like this. and they've done a study, whether or not a mother rat would abandon her baby rat if given cocaine and also, they've been trying to talk people into mailing them their toenails. and as period as that's-- >> that's disgusting. >> steve: what our government is doing. >> gretchen: toenail clippings. >> steve: as disgusting as that is, listen to this, so much money to going to our largest debtor, china and we're cutting the check. >> gretchen: still, you got me at toenails.

i'm more upset about mailing in toenail clippings than china. in all serious 90 million, 9 billion? >> no, 90 million. >> gretchen: 90 million is going over to china. >> eric: for what, research on acupuncture and toenails. >> steve: the chinese have figured out acupuncture, why are we giving you money. >> eric: here is the problem. they have the money, a surplus. >> steve: we are 14 trillion in the hole and figuring out way to pay that and we're turning around, that's crazy. >> gretchen: what kind of science do you get out of toenail clippings, e-mail us or twitter us. in the meantime, a spokesperson says that china's population is important for research and china represents an important opportunity to examine a comprehensive approach to hiv prevention,

international research on hiv/aids is essential. are we making a connection between toenail clippings and hiv. >> steve: we're talking the rat thing, the toenail thing a organization represents churches, traditional values coalition and they've looked at the money that our country is wasting and squandering. and come on, let's do an investigation, it's not right sending all of this dough to china. >> if you're checking and the epa's, 800,000 over to china and air pollution in china. you want to could all of these studies, that's fantastic. knock yourself out. you agree, knock yourself out. do them here in america where you're paying american scientists. >> create american jocks. >> create a job or two, what a great idea. not a chinese job. e-mail us, what do you think

about that. friends@foxnews.com. in the meantime, early on this sunday morning, there are incredible new details emerging about the alleged fort hood plotter, abdo how he planned to carry out the vicious attack. >> peter doocy is here, hi peter. >> he had enough material for two bombs and included 18 pounds of sugar, a pressure cooker and smokeless gun powder which was going to be used as the trigger, a law enforcement source tells us he was ready to go and other countertism source tells us the thing he had and the way he was going to build his bomb was quote, straight out of inspire magazine and al-qaeda explosives force manual, end quote. inspire magazine published at the arabian peninsula, the article he had, was make a bomb in the kitchen of your

mom. and the 21-year-old suspect who will ewohl from kentucky had a 40 cal bar handgun with him and ammo when he was picked up three miles from the front gate of fort hood. the similarities are cloer, as abdo screamed nadal hassan, 2009. apparently told police he was going to put the two bombs together and blown them up at a restaurant used by a lot of fort hood soldiers. in addition to screaming the name of the fort hood suspect, he yelled iraq, 2006 in court and had to be dragged out of of his seat because he wouldn't stand for the judge and know that last year he told abc news his muslim beliefs should let him be a conscien conscienceous objector and the army agreed until they found child pornography on his computer.

back to you, guys. >> peter, thank you for the live report. plus they found the thing he was talking about, how to build a bomb in the kitchen of your mom. >> that inspire magazine, that al-qaeda magazine that they-- >> how are they still in business. >> gretchen: how do we allow people in the u.s. military that don't believe in the u.s. and scheduled to appear in court on the second anniversary of their arrest, fatle and bower are hoping to be released, bauer and fatle. the third hiker was rereese leased last year and will not return to iran for her trial. >> is the fbi close to arresting famed hijacker known as db cooper? they believe they're hess, fingerprints from a suspect are tested and say it's most

promising. cooper hijacked a northwest airlines flight and disappeared with ransom money and won't say if the suspect is dead or alive. >> a folk hero to connellment and nearly a decade after the attacks on 9/11, several new yorkers are calling for the name of the area to be dropped. people like construction workers involved in rebuilding ground zero say that the term stabilizes death and destruction as opposed to hope and for the future, which is what real estate people want to refer to it as. meanwhile, the site is home to the brand new 9/11 memorial which will be dedicated in a special ceremony on the 10th anniversary of the attacks, but president obama and former president george w. bush will both be in attendance. >> all right. and those are your quick headlines today. all right, let's talk about the tea partiers and how they

all factor into the debt discussion. called extreme, crazy right wingers and even just plain stupid because they won't spend more money? the chairman of the tea party express here next to confront her critics. >> and she stands to make a fortune from tv interviews and book deals. first, casey anthony wants to do something different. we'll tell you what it is next. [ male annocer ] things seem better with travelocity's best price guarantee. our girl's an architect. our boy's a genius. we are awesome parents! biddly-boop. [ male announcer ] if you find a lower rate on a room you've booked, we won't just match it. we'll give you $50 towards your next trip.

[ gnome ] it's go time. how'd you learn to do that? what'd you use? every project we finish comes with a story built-in. it's how our rough ideas become "you did that yourself?" so when we can save more on the projects that let us fix, make, and do more... that just makes the stories even better. more saving. more doing. that's the power of the home depot. add some style to your sink, with this moen banbury faucet for the new lower price of 79 bucks.

add some style to your sink, with this moen banbury faucet diabetes testing? it's all the same. nothing changes. then try this. freestyle lite® blood glucose test strip. sure, but it's not gonna-- [beep] wow. yep, that's the patented freestyle zipwik™ design. did it just-- [both] target the blood? yeah, drew it right in. the test starts fast. you need just a third the blood of one touch.® that is different. so freestyle lite test strips make testing... easy? easy. great. call or click-- we'll send you strips and a meter, free. free is good. freestyle lite test strips. call or click today.

shows your pet you care by unleashing a complete killing force against fleasnd ticks. and not just adult fleas. what makes frontline plus complete is that it breaks the flea life cycle killing adults, eggs and larvae. and it keeps killing fleas and ticks all month long. that's why it's the #1 choice of vets for their pets, and yours. unleash a complete killing force inevery dose of frtline plus.

>> 36 minutes at the top of the hour. quick headlines for you. the alleged master mind of a u.s. employee and her husband under arrest after raids in mexico. said to be in charge of the gang, and authorities believe he ordered the killing of leslie enrequestions and arthur level. and looks like casey anthony may be headed to a shrink. sources close to anthony says she'll be treated for mental health issues before going public. they say she was traumatized by the death of her daughter and being confined for three years didn't help. gu guys. >> while congress may be close reportedly to working out a deal to resolve the budget,

the debt crisis to say, the tea party has come under fire for demanding more spending cuts. members of the media are comparing them to terrorists. >> they strap explosives to the capitol and thing they are immune from it, the tea party caucus wants this crisis and do we want to do this again six months from now, this whole two step process, another thing, which is they like the drama, they want to do it again. >> so, is this the new tone of the debt debate? joining us now is the head of the tea party express, amy, great to talk to you again. and hezbollah, terrorists, the rhetoric has been stepped up against the tea party, do you deserve it. >> it sure has been stepped up, but no, we don't-- we're a threat to their agenda, we wouldn't have a debate over the spending and obama would have had the blank

check and moved onto the next issue. i'm not advised by it. >> in this morning's new york times maureen dowd referred to tea partiers as political suicide bombers, but when you look at the election last year, it was a clear mandate, it was a landslide with the freshman class, love them or hate them, we start standing on principle. >> steve, that's the people speak loud of and clear last november and it's all about the spending and that's why we're here and everybody wants to differentiate freshmen versus republican establishment, they would have control of the house if it weren't for the tea party freshman and the movement across the country. >> and tell us a little the debt debate and it was on the house side and john boehner's bill wasn't passing because a lot of the tea party, the tea party, congress people, when the budget amendment, the balanced budget amendment got enough votes and went over to the the senate and now it's going to come back, if it doesn't come back with the billion dollar budget

amendment part of it, can a tea party person vote for it, in favor of it? >> well, i think we're just going to have to wait and see where the dust settles and what exactly comes back, but the bottom line, eric, if the debt ceiling is only a sense of the bigger problem, the massive amount of debt that we have, so just to cut, cut, cut right now is not enough. we want a permanent mechanism in place, and we don't find ourselves in the same position years down the road from now. and amy when you look at the final on the boehner bill. if you read the mainstream media talking about the freshman uprising, and only 10 were from the freshman class and it's part of the mainstream media narrative, these guys are a bunch of cooks out to destroy everything. >> look, this is not about political suicide.

this is being a fiscal conservative. the bottom line is, we can't spend more than we take in and that's what our country has been doing and it's not sustainable. so, at least people are wisening up and realizing the position we're in and trying to do something about it and i think it's nothing more than being fiscally responsibility. >> the balanced budget we're talking 3 trillion dollars worth of new spending. i can't imagine the tea party or members of congress to vote for increasing spending by 3 trillion dollars. >> well, you know, this is the thing, we absolutely are not advocating for a raise in the debt ceiling, but we know that it's coming and so we want some mechanism in place so that we don't find our self in the situation down the road an as i said. the bottom line, we have to do entitlement reform. this is a bigger issue, we can't balance the u.s. budget by just cutting discretionary

spending. >> and before you go, you know, our lead story is apparently, there are reports out there that they could be close to a deal. from what you have heard about the deal, would the tea party support this? >> well, as i said. i think we're going to have to wait and see what comes back because the bottom line is, steve. americans don't want to deal, they want a solution. >> you're exactly right. thank for joining us. >> it's a pleasure. >> thanks for having me. >> straight ahead. airport security is about to change and soon tsa agents will be able to single you out for questioning and profiling works, but what about great big countries like the united states. we examine next. and charlie, charlie, did you really need another controversy? the congressman who didn't pay taxes now tied to even more bad checks? oh spaghettio. ♪

turn left. you have arrived. sweet belt. e-reader for textbooks. gps. hd video cam for lectures. game pad. have you considered this by motorola ? it's got all that and more than 200,000 apps. technology to learn and play on-the-go.

only at verizon. get the latest smartphones like the more powerful than ever droid x2 by motorola. buy one for $199.99, get another one free. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. autonsurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. ben your lega. get an auto insurance quote. u.s.a.a. we know what it means to serve.

>> take a look at that. we're live at the ohio state fair and rick reichmuth is there and i think it's time

for somebody to get a shave, isn't it? do you have some sheep there. >> we do, did you ever show animals growing up in kansas, steve. >> steve: absolutely, i was in 4-h and showed pigs and i showed rabbits. >> exactly, it's a big thing. we're here with the winner here, the grand champion of the market lamb, and this right here is johnnie and johnnie is the grand champion market lamb. >> yes. >> all right. so people come here and they look at this lamb versus another one, what makes johnnie different, made jny win this? >> there really wasn't a huge difference, it was a little bit of a tossup. he could have gone either way, it was just you've got to have a little luck and it was my lucky day. >> you're being humble. there's got to be something that makes johnnie a special lamb for the competition. >> i don't know, probably for the judge, but i love this lamb. i'm glad that he won. and he's a really good lamb. >> he's seven months old. >> yes. >> when you got johnnie as a

baby, did you think there was something special about this one. >> yeah, he was a really, really good lamb when he was little. >> all right. congratulations on the big win. you play such a big part in the state fairs and bring in suzie, the president of the junior fair board. tons of organizations of youth, making the entire thing run. tell me about what you guys do. >> there are 90 organizations that represent the fair, f.a.a., 4-h. the scout, junior grange and camp fire and we open with the pool, with the parade every day, and a lot of the odd jobs behind the scenes that we do. >> ffa. i grew up in nebraska for a file and we had ffa and fha back in the day and boys and girls, fha, you're the head of the group.

>> we have 23,000 members here in ohio and with every organization we have here, in the board we're active in our local, county, state international levels. >> great things for kids to learn and an idea about where food comes from, an idea about trar local communities and what did you learn about being involved in an organization like this? >> i've learned a lot about who i want to be as myself. we develop people that are confident and going to be leaders in our industries in the future and i want to be an agricultural educator because my agriculture teachers in high school saw potential in me and i would do that for others. >> that's cool, ohio. anything special for this. >> we have our food set up in the discovery building. >> agriculture a big part of this place. >> yes. >> and this is the sleep and we have something else coming up, including the bands that perform here. >> it's good to know that ffa

and 4-h are live in ohio. we'll look for live reports throughout the morning. all right, gretchen, over to you. >> gretchen: let's switch gears and talk about airport security. it's about to undergo another change. tsa is about to borrow another page from israel's airport security by profiling passengers with behavior detection techniques? can this method be effective here in the united states? joining me is former assistant secretary from the department of homeland security, he's consulted on airline security. good morning to you. >> good morning, gretchen, how are you. >> i'm fine. the idea that they're going to start looking at behavioral techniques or attitudes of people, or what exactly do you think they're going to be looking at, at potential passengers? >> well, this is a good tool. this is a tool that's going to allow the tsa and law enforcement agencies to be able to identify or

potentially detect those people. criminals or terrorists. >> how about that happen? i mean, the tsa officers are going to be called behavior detection officers at 161 airports. so are we to assume that these are the people that are checking our i.d.'s and they might just get into more of a conversation with us before we go through security? how will it work? >> it's a layered approach and looking at all sorts of behavior. identifying people in line or in the airports that are looking, now, that are acting suspiciously or uncomfortable and stop and look at them in line and they'll talk to them and engaging in conversation and looking for traits or conversations that indicate they might be selected further. >> let me ask you, will they take an already employed tsa person, up until this point their job has been to look at the screen and to look at i.d.'s and suddenly, they're going to be a behavior expert. >> i think the selection process is well publicized and

they have the attitudes to interact in a casual way, not cause them to be alarmed and by the same token identify the characteristics as i said, indicating abnormal or anomalous behavior and further investigated. this requires a significant amount of training and it requires people who are capable of using principles, but not jumping to conclusions that are going to be using reasonable approaches to identify potential terrorist. >> so the tsa chief said this, i'm very much interested in expanding the behavior detection program in a way that allows us more information with the passengers, just a discussion that may expedite the physical screening. there's something to the israeli model that's effective. what he's talking about el al airlines, much smaller country and smaller airline, they put passengers through hours of questioning and searching and going through their luggage. do you see it becoming as expansive here in this

country? and do you think it will work? >> yeah, i think it will work. i think it's a layered approach as we indicated. we're looking at all sorts of data that aggregate up to identifying terrorists. it's not just interviewing somebody in line for a few minutes or even a half hour, it's looking where they're coming from, their background data and the data mining systems in place that allow you to identify people and looking at checked baggage and looking at a screen process, a multi-layered approach and this is one fast set of it and it's attempting to identify people again. it might have behaviors that can indicate that they're doing something criminal or terrorist related. >> so you know that-- >> they'll be highly trained. >> you know the critics of this program. and lead you to racial profiling and what would your response be to that. >> i'm sure you'd have that discussion. you need to be looking at all fashions of the individuals not just the verbal responses to you, but where they're

coming from and the origin. it's comprehensive. if you look at israeli system not suggesting they use racial profiling, but look at ethnic background for criteria for selecting further investigation. they've got a much more smaller population and it's a much different environment. i'm not saying the techniques don't scale. they clearly scale for the united states. we're challenged by our legal system and challenged by balancing democracy and security and our societal concerns, but the reality is for security we have to look at the entire picture not suggesting that racial profiling is it the only element, but looking at all characteristics we need to be cognizant of. >> do you think the growing pressure, about six month owed babies with a pat down and 90-year-old women that are wearing adult diapers getting a patdown? >> i think that's an element. but the fact that the terrorists are much more adept of finding and exploiting the

and you look at threats reports implanting explosives into people. recent attack in afghanistan, apparently placed in the turban of an attacker. they're innovative and for us to identify the trends we have to be equally as innovative and we're going to take risks and employing techniques, failure is not an option. and the terrorists detroiting to exploit us. >> gretchen: thank you. >> i appreciate it. >> gretchen: independent voters are getting sour on president obama. how will they react that he's teaming up with speaker boehner? and it was so powerful it split the jet in two, they all survived and much more incredible ahead this sunday morning.

♪ where do you go to find a busess backed by the superguarantee®? only& suonline.s®. on your phone. or in the book. go to superpages®. and let the good guys save the day.

didn't really know what i wanted to do. didn't like high school. and then i met my teacher, mr. mccooey, and that click happened. i would never have even thought about going into the engineering field if it wasn't for these ap classes, these teachers and them helping me realize that this is a major calling in my life. ♪ i didn't always know that i would like math, but now i think it'll change my life. oh, we call it the bundler. let's say you need home and auto insurance. you give us your information once, online... [ whirring and beeping ]

[ ding! ] and we give you a discount on both. sort of like two in one. how did you guys think of that? it just came to us. what? bundling and saving made easy. now, that's progressive. call or click today.

>> top of the morning to you,

sunday, july 31st. i'm gretchen carlson. the president apparently highered won't be the only democrat steaming about this deal. is that true, eric. >> eric: a soldier plotting another massacre at fort hood. in fact, he had two of them. fox news with the first look inside his arsenal, steven. >> steve: charlie, did you really need another controversy? apparently the new york congressman who didn't pay his taxes, now, tied to more bad checks and pretty bad website, too, what's that about? we'll tell you all about it, hour two or the special under edition of "fox & friends" starts right now. >> good morning, everyone, no, you're not on the wrong kay, it is sunday.

>> steve: we're on the wrong day. >> gretchen: steve and gretchen and eric bolling ostensibly for brian, but monday through friday. but, an important situation with regard to the debt ceiling deadline that's approaching on tuesday. yesterday, in the afternoon, the republicans came on, john boehner and mitch mcconnell had a stunning press conference in which they said we may have an actual deal. and after last week we had, a lot of people were taken aback. >> steve: and harry reid said i don't know what they're talking about, i've been on negotiations and i'm here, it does not look good. we're not closer, however, mr. reid changed his tune shortly after ten o'clock last night and said that the talks between mitch mcconnell, the minority leader of the senate, and joe biden were progressing to the point where they had made significant progress and harry reid was going to call for a vote to actually start voting on the senate deal.

>> eric: on his deal. >> steve: on his senate deal, nonetheless they were going to vote on it at one o'clock in the morning and 11th hour, literally, now what? let's put that up 12 mours, which is good and the theory is maybe they're getting ground with a boehner, mcconnell and joe biden, white house deal that happened to look a little like this. somewhere, take a listen, somewhere between 2.1, to 2.4, as high as 2.8 trillion dollars in debt ceiling raises, as long as spending cuts of roughly the same amount over ten years, dollar for dollar. we need to point something out. this is two tranches of the debt ceiling raises, the first one a trillion dollars and nokes between 1.2 and, but the spending cuts are not going to happen immediately. you may get-- >> it's spread out. >> 90 billion dollars in the first year, maybe 100 billion dollars, but a lot of it's backloaded so spending cuts are down the road, but the

debt ceiling rises and that's what some, a lot of the more conservative republicans are worried about, that maybe down the road, we don't agree to all of the spending cuts. >> and the next congress could change it. >> it could change it. >> and then they have a super committee which if you look at the rest of the page. the formation of a special congressional committee to recommend further deficit reduction to 1.6 trillion, but that special committee must make recommendations by late november and that, i guess, has been the sticking point all along, what would happen if they don't. the so-called trigger effect? what would happen? now, also, if they don't approve the cuts by december 23rd, it goes automatic and they go into cuts for medicare and a lot of the stuff i was reading this morning, more cuts on defense instead of medicare and didn't we get into this because of entitlements? even if they had the deal today or before tuesday, it doesn't solve the problems in the united states, this is kicking the can down the road

according to a lot of experts because you're not touching the biggest programs in the country and will run out quickly. a vote on balanced budget amendment and that's part of the triggers. and the argument is when the triggers kick in. apparently, the super committee, if they fail to come up with 1.8 trillion dollars worth of cuts, that would extend over the ten years, then, and this is the incentive for them to get some sort of a deal, only then would the balanced budget amendment move on to the states. >> eric: let me point this out quickly, hearing from harry reid on the trigger, balanced budget basically says you have to balance the budget going forward and have to tackle medicare and medicaid they don't want to touch right now because you can't go from 3.8 trillion dollar budget which we have right now and take in 2.4 trillion dollars.

we have a budget deficit so going forward we have to balance the budget. >> steve: wait a minute, are you saying-- >> it's my understanding only part of the deal is that they take a vote on the balanced budget amendment not that it's part of the deal and actually pass it. >> eric: we don't know what it is. the problem, when boehner couldn't get enough votes on the house side to send it to the senate because he didn't have a balanced budget amendment in it. when he added that, they had enough votes and went to the senate. the problem, if it's only used in a trigger situation, all you've done is say here is the debt ceiling, raise it away. >> so, that's what's at play here. if they're unable to come to an agreement, the super committee of who knows who is going to be on it, then the triggers hit, where only then would it go to the state, only then would they make 4% cuts to medicaid and to defense as well. and harry reid has been talking about the trigger and we're not talking about the-- roy rogers horse.

>> that's exactly right. >> the issue has been now for a week or so, a trigger, if the joint committee does come up with the results, what should happen, and have we been willing to say that we're happy if we don't arrive at the budget goals with the joint committee, that certain things should happen. we've been willing to say that there could be a skwes strayings, as long as it included some revenue, we're happy to have a trigger, but they cannot keep turning their head away from the american people who say this should be shared sacrifice. >> i'm confident and optimistic that we're going to get an agreement in the very clear future and resolve this crisis in the best interest of the american people. let me just say, you know, our country is not going to default for the first time in history. that's not going to happen. we now have, i think, a level of seriousness with the right

people at the table that we needed of and thought we'd had as the speaker indicated last weekend, we're going to get a result. >> when he says a level of seriousness, with the right people at the table. do you think it's a slap at the white house, they are he getting down to the howie mandell, deal or no deal. >> he said the right people at the table. he said keep the ultimate people out of all of us in america, saying sign or not. maybe it means that the president is back at the table and a lot of people said he was mia. >> eric: listen, i can't imagine that this deal that they put together, mcdonnell, biden, whether the president is involved in it as well. when it comes back to the house that this passes. it has to be watered down boehner, it's got to be boehner light, and boehner light is not going to make it. we tried boehner light and got delayed, delayed, delayed, until finally they became, you know, nancy pelosi is stepping up the rhetoric. take a listen to what she says

about john boehner. >> the speak ser chose when he didn't have the votes, instead to reach out in a bipartisan way to see how we could work together. he chose to go to the dark side. and let's bring-- let me repeat, and i repeat, he chose to go to the dark si side. >> those comments many members of congress felt were over the line and wanted them taken out of the record. and think of-- dark side, talking darth vader? >> i want that debt ceiling increase luke skywalker. >> given what she said about the speaker of the house, think about it, we always put the shoe on the other foot. if that were a republican talking about nancy pelosi, don't you think the mainstream media would absolutely have a hissy fit?

>> maybe this is the first time that she said that boehner has gone to the dark side, but that's not the first time the tea party-- >> this is the leader of the house. >> and what if they'd said that about the president of the united states, gone over to the other side. crazy. e-mail us, friend a-foxnews.com, we have the e-mail machines in front of us. >> a devastating attack in afghanistan. at least ten police officers and one child were killed when a homicide bomber struck outside the police headquarters at lashkar gah. admiral mullen is in afghanistan and warned about watching out for violence, holy month of ramadan. the sole survivor of a mid air

collection in alaska. four people died after the plane crashed. the other plane was damaged and the pilot 56-year-old surveyed the other plane wreckage from the air, but saw no signs of life and managed to land safely in anchorage, the names of the victims have not been released. another airline disaster, shocking pictures of a plane that splits in two in the country of guyana, remarkably, nobody was killed. it skidded, stopped short of a deep ravine before breaking into two. it was chaos after the landing, because there were no rescue crews on the scene for quite some tie. 30 people were hurt, none of the injuries though life threatening. congressman charlie rangel, censured for not paying taxes find himself in another controversy. he received a grant for the

harlem chamber of commerce to help small businesses. turns out the harlem chamber used the money to send on a trip to the caribbean and a website that no longer works, not one loan was given out and not one business was saved and yet, he is reelected by a landslide every single time he comes up for election. >> well, maybe they need to go to the caribbean because they were absolutely exhausted. >> or for run fun. a lot of people go to fairs this time of the year. and states have big fairs, ohio has one of the biggest and that's where we find rick reichmuth in front of the band. good morning. >> yes, it's kind of the season for state fairs and ohio state has a great one and want to show you the band in a second and first talk about the weather. we have big things going on, mostly the the heat baking areas of the planes and the temperatures as you're waking up. the early 80's across central texas right now and only

getting warmer. 29 days in a row over 100 in dallas, second highest streak ever and likely are going to get to the longest streak with those temperatures, this week, they're going to bake the plains. and satellite radar, we've got pretty nice conditions and it's going to be hot and humid and thunderstorms, across the west and pushing into the four corners and see more thunderstorms throughout the day and four corner states and also, into nevada and parts of california is going to see a little bit of rain as well. we like to see that this time of the year. temps for today, baking across the plains and see all kinds of temps, mid and upper 90's and heat advisories again across parts of the plains and towards areas of the south. and we're also going to be watching temps around dallas to 104 today and one last bit of piece of news on the weather front and that's potentially another tropical system that we're going to deal with, across parts of the atlantic and watch that one, likely by the end of the day,

becoming our next storm possibly emily. that's the latest on the weather. there is going to be something coming up from this bend here. and steve, back to you. >> thank you very much. rick, straight ahead. we're really pushing this debt deadline and in fact, we may lose our triple-a credit rating and even if there is a deal and some are pointing the fingers at president obama saying it's a failure of leadership. that is coming up live. >> and we're surrounded by rebels. how can a mad dictator win back the world support. gaddafi has a plan. >> gretchen: back to ohio where the ohio state fair band plays us out to break. ♪

♪ naturals from purina cat chow. delicious, real ingredients with no artificial flavors or preservatives. naturals from purina cat chow. share a better life.

fiber one. h, forgot jack cereal. [ jack ] what's for breakfast? um... try the number one! [ jack ] yeah, ts is pretty good. [ male announcer ]alf a day's worth of fiber. fiber one. >> well, it's down to the wire, the debt negotiations,

that's why we're working this morning. here is the president on solving the crisis. >> here in washington, we need to get our house in in order and i have to say, democrats in congress and some senate republicans have been listening and shown themselves willing to make compromises to resolve this crisis and now all of us, including republicans in the house of representatives, need to demonstrate the same kind of responsibility the american people show every day. >> some say that washington's debt problems stem from the president's failure to lead. joining us right now, our democratic strategy, and president ever pen financial group, matt mccall. >> good morning. >> i read an interesting column in the new york post yesterday where they talked about how, where is the leadership for the president of the united states? because during this crisis, with our economy, how did, what's his plan? >> it's to make a speech because we haven't seen the president's plan. >> he has been conceding a lot. he has been conceding a lot on

medicare, and on social security cola raises. my problem with the president he starts negotiating to himself and moves to where he thinks the republicans are and starts to negotiate with them. and my preference for the president, this is a deal breaking, taxes on the wealthy, closing loopholes on corporations, instead he's going too far. as a democrat i think he's negotiating too much and compromising too much. >> steve: well, there was a deal on the table, but harry reid agreed to and the republicans agreed to last week, last sunday, but the president said, oh, i can't do that because i need a long-term deal that's going to zoom me right past my reelection. >> that's what it comes down to. i don't know if you know where the president stands. the only thing that he-- >> we do know where he stands he wants to be reelected. >> he wants to be reelected and not have the situation arise before the election. if it comes up before the

reelection, there's no way he gets reelected. he's the ceo of ow country and he should be pushing for the deal to be done. instead goes on national television and talks about the last administration ten years ago, what happened. let' talk about today. >> in fairness the markets don't want to see this become an issue in six months. why in god's name do we want to put the markets through this uncertainty. why don't we have the markets-- >> julie, look at harry reid had the option after the election in last november. >> why blame harry reid? i want to hold the tea party for want ago long-term keel. >> the american people started saving and stopped spending and want the government to do the same. and holding hostages-- we're looking out for the future of our countriesments we're not going to have market incertainty to the point the markets are holding their breath once again. get a deal done, tea party, come on, up to the table. >> the tea party, one of the

problems with the economy, people need jobs. they do. >> that's really the problem there. we're going to continue the conversation, a great debate on this sunday morning. who needs coffee? up next with independent voters are going sour on president obama. how will they react to him cutting a deal with perhaps speaker boehner. the government is refusing to cover cancer in workers who got sick at ground zero because the science doesn't add up they say. next this stunned and "fox & friends." wer our lives. while energy developement comes with some risk, north america's natural gas producers are committed to safely and responsibly providing decades of cleaner burning energy for our country, drilling thousands of feet below fresh water sources within self contained well systems and using state of the art monitoring technologies, rigorous practices help ensure our operations are safe and clean for our communities and the environment we are america's natural gas.

you have arrived. sweet belt. e-reader for textbooks. gps. video camera for lectures. game pad. have you considered this ? it's got all tha and more than 200,000 apps. technology to learn and play on-the-go. only at verizon. android powered. playstation certified. the xperia play by sony ericsson. only $99.99. but it's our job to make them say something interesting. so how about this weekend we learn some new tricks of the trade... then break out our doing clothes and get rolling. let's use some paint that helps us get the job done in record time and makes a statement when we're finished. we're lowering the cost of a new favorite color. more saving. more doing. that's the power of the home depot. take your painting skills to the next level at one of our free paint workshops.

take your painting skills to the next level diabetes testing? what else is new? you get the blood, hope it's enough, it's-- what's this? freestyle lite® blood glucose test strip. sure, i'll try it, but-- [beep] wow. yep, that's the patented freestyle zipwik™ design. it's like it-- [both] targets the blood. yeah, draws it right in. the test starts fast. you need just a third the blood of one touch.® okay. freestyle test strips. i'll take 'em. sure. call or click-- we'll send you strips and a meter, free. can't i just have these? freestyle lite test strips. call or click today.

>> all right. time for news by the numbers. first, number three, that's how many trees were just planted in the flight 93 memorial in shanksville, pennsylvania. 37 more will be planned to

honor 40 passengers who died at 9/11. 75 million dollars, that's how much a new convention center will cost in cedar rapids, iowa. this parking garage was imploded to make room. and finally, 64. happy birthday, arnold schwarzenegger, the former california governor turned 64 yesterday and celebrated by going for a bike ride on venice beach. isn't that nice? over to you, steven. >> he went alone. >> meanwhile, and while his plans for a 2012 white house reelection bid are not-- we're talking about the -- we're talking about rick perry, about the president. we don't know about rick perry and he's left little doubt though on his thoughts about the presidency. >> the mix of arrogance and audacity that guides the obama administration is an affront to every freedom loving american and a threat to just about every private sector job

out there. >> steve: a pew research poll shows the president's reelection may be in trouble. he's bleeding independent voters 31%, not enough to get him reelected. down from 40 in march and beginning the conversation with julie and matt mccall. julie, where are the independents going? they're leaving the guy who is living in the the house hyped you. >> he's got to get thm back and he's not running in a vacuum. he's running against sunday and as of the last fox news poll, leading rondemney. it's generic polls. >> he's not running against a dream candidate who an apparition, he's running against mitt romney, michele bachmann and leading every one of them according to a fox news poll. >> or if it was rick perry who has not officially thrown his texas statson into the ringment one thing about that guy, the the governor of texas, that state created more jobs in the last year or so

than all the other states in the united states combined and if you were out of work or thinking that the economy is stinking up the place right now, we don't have any jobs, take a hard look at that guy. >> he's lucky he lives in texas and runs texas because of the energy infrastructure going on there. oil and gas. and i think that obama's in a heap of trouble because he needs an independent vote. the swing vote when it comes to the election in 2012 and the fact that he's losing that, tells me to go back to the tea party. i think the tea party makes up a large portion of the independent voters and they want the country to stop spending and that's a big reason that we've not seen the leadership out of of obama step up and see the independent voters swing back to the g.o.p. side. >> and that's having looked at hundreds of polls and the taerp makes up the republican voice not just independent voters if you look at any polls. in terms of texas and rick perry, perry's texas has a higher unemployment rate than the national average.

whatever jobs have been created the job situation was so bad it's gotten slightly better, but worse than the national average. first of all, rick perry should remember he's an american and stop talking about succession and the president's job creation record when he has higher unemployment than the rest of the country. >> while a lot of americans don't identify themselves as tea party members, a lot of people are sympathetic what the tea party is trying to do. love them or hate them, they stand for something, washington d.c. has gone on a drunken spending binge and both parties are to blame and tea party are willing to do something about it, take a stand. maybe they're not checking the box at the tea party, but the ideology of the tea party, comes down to the fact that they need a leader that knows how to run the country as if it's a business and the they have to realize at that eventually you're going to run out of money. luckily for obama right now he has a printing press in his payment and can keep printing

money to get out of this problem. eventually you have to pay your bar tab. he's been drinking all day and. >> again, poll after poll after poll shows 20% ever american people agree with the tea party stance and that's hijacking the budget process and 80% of the american public does not agree with the-- >> what they're doing. >> they put our country on the right path to the future. >> you cannot keep printing money. our u.s. dollar has gone down for ten straight years. >> how long has obama been in office, not-- >> are you blaming bush now. >> no, excuse me, am i blaming bush now? obama inherited a yugo not a cadillac and give him time to get out of the more ross. >> 10% unemployment. >> 9.2% unemployment. he did not exactly inherit the situation. >> and these two have been arguing for 15 minutes now, guess what, we're going to send you home in the same cab. >> excellent. >> julie and matt, great

debate on this sunday morning. thank you. >> and he showed up to rally support, admiral mike mullen did not expect this, soldiers with answers on the debt ceiling. they need to tell their families the paychecks will be in the mail later this week. and people across the globe think he's a nut and he can't stand it. gaddafi has a plan to revamp his image, a makeover. you're not going to want to miss this. ♪ . ♪ a vacation on a budget with expedia. make it work. booking a flight by itself is an uh-oh.

see if we can "stitch" together a better deal. that's a hint, antoine. ooh! see what anandra did? booking your flight and hotel at the same time gets you prices hotels and airlines won't let expedia show separately. book it. major wow factor! where you book matters. expedia.

>> welcome back everyone, a half world away from washington d.c., the debt crisis is weighing heavily on the mind of the u.s. troops serving overseas.

>> they are concerned they won't get paid if the u.s. defaul defaults. >> as you-- we move >> joining us from san diego is the father of an active duty marine, thank you for your service and your son's service, by the way. what do you think when you hear admiral mullen saying, he's not sure, he can't guarantee that active duty people, putting their lives on the line overseas in iraq, afghanistan, may not be paid. meanwhile, they're playing around in washington and can't get their act together? >> well, i'm certainly encouraged by the news i've heard on your show early this morning, that maybe there is a deal in the works, but i certainly understand the concern the servicemen and women. look, i spent 26 years in the

fbi, many of those years under cover, i know what it's like to be on that high wire alone without a net. i face danger, and these men are out there risking their lives for us, and now, they have to remain focused on what they're doing and they can't be worried about their families back home. and we just left our son, he-- we were two weeks with him and he recently returned from his latest overseas assignment, four families living across the street from him. four of the five families all were deployed to combat zones. those wives can't be worried about whether they're going to be able to have money to buy groceries. they have to be concerned about living the life. being a single mom. what it's like being a spouse with a husband deployed. that means people deployed that are facing the dangers. they can't be be distracted by wondering whether or not their wives are going to get money. whether they're going to be able to put groceries on the

table. >> so, m hamer, several politicians tried to introduce legislation that would say that the troops for sure would be paid some of the first in line, if we actually went through the crisis. obviously, you would agree with at that legislation. oh, absolutely. look, we're not talking about, paying for some, you know, feather merchant at the commercial department. these are our sons and daughters at that we have sent overseas. if a republican administration and a democratic administration that have sent our sons and daughters into harm's way, they should be paid, they should not only pay first, they should be paid regardless of whether this crisis is resolved or not. i don't care. i'm asking speaker boehner, i want to a deal tomorrow morning that only talks about our military. make sure these men and women are paid. >> absolutely. we know your son joe,

currently an a marine. apparently they mullen was over at camp leatherneck, what about the pentagon's budget. forget about us getting paid. how many big cuts are going be to be made. should we use so many contractors when the military can do the job instead. remember what happened during the clinton administration, they gutted the pentagon. >> i think you've got professional people over there. these marines, these soldiers, sailors, the airmen over there, they know with a their mission is and they want to get the mission accomplished so they want to make sure that they have the tools to accomplish the mission so they are concerned about this budget, not only for what's happening back at home with wives and children, but whether they're going to have the tools to finish this mission. this is an important battle that we're facing overseas, we

can't afford to lose this war on terror, we have to win it militarily and we've got to give our men and women the tools. >> gretchen: all right. he has been a former marine, his son is a marine and wounded warriors, thanks, bob, for getting up early for us. >> steve: and throwing in there quickly, active duty per month. >> geraldo: 2.9 billion to pay these guyses we take in 173 billion a month. that should not be, if not at the top, darn near the top. >> steve: here, here. >> gretchen: now your headlines for a sunday morning, we're learning more about private first class is it nasser abdo, plotting attacks on fort hood. police say say he learns how to make bombs by an al-qaeda

explosives manual. and julied out the name of hassan, the man accused of the first fort hood shooting that killed 14 people. >> the fbi is offering a $25,000 reward leading to find celina cass who was last seen in her home. dive teams are searching, but homes are fading that she'll be found alive. this is still being treated as a missing persons case. >> and amanda knox, convicted of murder in italy. experts testified at least 50 mistakes made by the police into the investigation into the death. they told the judge that dna evidence is not reliable because the police wore dirty gloves and didn't properly seal the knife allegedly used to kill her. >> gretchen: could muammar

gaddafi soon be "dancing with the stars." the libyan leader reportedly looking to hire a firm to help revamp his image. >> didn't know he had that good of a body. >> and probably won't be dancing anytime soon, but reportedly looking into something like a daily press release that would point him as a kind and moral leader. so far no takers. how is he still in power, wasn't the effort to kick his butt out of town? he's still there. >> well, some of the people like him. >> steve: off we go to columbus, ohio. we've got the special animation on this sunday morning because rick reichmuth is live at the ohio state fair. you think ohio, you think agriculture pretty much. a big agriculture state and joined by the director of the ohio state department of agriculture. that's a big job in a state like ohio. >> it is, rick, we have one out of seven people in the state of ohio work in

agriculture in some way, the largest industry in the state of ohio and introducing 100 billion dollars into the economy. >> come up with ideas and kids now don't think about agriculture as a career and you're trying to get the kids involved to see how it's cool. >> the governor came up with a saying, ag is cool. we're about three or four generations removed from the farms so there are a lot of children and adults out there that don't realize where our food comes from. it's a great place, the ohio state to showcase agriculture. >> i've got to it will you, you guys are showing some of the signs behind this now and a lot of kids think ag and farming and all they're thinking about is maybe cows and sheep, but there's some science. >> oh, yeah, you can be a scientist, you can be a computer programmer, you can be a veterinarian, many occupations that deal with

agriculture. not just farming. there's about 200 different occupations and that's part of the school, to come and see early on and make maybe getting a career path toward one of the goals. >> one of the things i think is coolest ever. right here, the sheep were born yesterday and kids can see the sheep a day old. >> they were born yesterday. and ohio is a largest state producing sheep this side of the mississippi. and come out and watch them born and milk the cow and drive the system later. you see the baby sheep there and good luck with this. you have a big task at hand and you've done a great job preparing. >> we'll send it back to you. >> a lot of the city slicker kids going, oh, that's where milk comes from? wait until they find out where hamburgers come from. >> and ag is cool. >> gretchen: my daughter's favorite camp this year was

farm camp. going to a different farm every day, keeping those values and traditions going. and the debt situation is so serious, why did senate democrats say no to every plan up for a vote? one of those democrats here to explain his side of the story. >> eric:. >> then the government is refusing to cover cancer in workers who got sick at ground zero because the quote, science, don't add up. and a rescue reacts from his own words. >> steve: shots fired on live tv. a reporter hit during a report. the video just into our news room. stick around. sweetie i think you need a little extra fiber in your diet. carol. fiber makes me sad. oh common. and how can you talk to me about fiber while you are eating a candy bar? you enjoy that. i am. [ male announcer ] fiber beyond recognition. fiber one. our girl's an architect. our boy's a genius.

we are awesome parents! biddly-boop. [ male announcer ] if you find a lower rate on a room you've booked, we won't just match it. we'll give you $50 towards your next trip. [ gnome ] it's go time. you know that comes with a private island. really? no. it comes with a hat. you see, airline credit cards promise flights for 25,00miles, but... [ man ] there's never any seats for ,000 miles. frustrating, isn't it? but that won't happen with the capital one venture card. you can book any airline anytime. hey, i just said that. after all, isn't traveling hard enough? ow. [ male announcer ] to get the flights you want, sign up for a venture card at capitalone.com. what's in your wallet? uh, it's okay. i've played a pilot before.

i don't know. the usual? [ blower whirring ] sometimes it pays to switch things up. my - what, my hair? no. car insurance. i switched to progressive and they gave me discounts for the time i spent with my old company. saved a bunch. that's a reason to switch. big savings -- it's a good look for you.

[ blower whirring ] [blower stops] the safety was off. out there with a better way. now, that's progressive. >> 45 minutes after the top of the hour. a couple of quick headlines for you, replica of the wright brothers plane crashes in oh ohio, no word why it crashed and both pilots had experience flying this type of plane. new video out of l.a. moments after a tv reporter was shot by a bb gun. she wasn't live on the air when it happened and back on moments after trying to finish her report and she was struck in the hand and taken to a hospital. she will be okay. two teenage boys are in custody. back over to eric on the couch. >> eric: thank you, gretchen. 9/11 responders diagnosed with cancer after the attack on the world trade center will not receive federal funds because the administration known for

the program-- i'm sorry, the program known as the sidroda act, says there's no connection. and he's not happy with the decision, first of all, thanks for helping ut down there, 9/11 saw that and remember distinctly, everything about that. what happened to you? you were injured. how were you injured. >> steel crushed my left leg and wound up losing my foot afghan green. >> let's talk about what is covered. >> acid reflex is covered. sleep apnea, is cancer is not. >> the quintessential cancer is not by september or october, we'll be covered, that's how kfrt him. a lot of people who i know who worked down there spent time down there, developing lung cancer and apparently asbestos in the building when they came down.

not covered? >> not yet. through the nose, mouth and skin absorption of the the chemicals caused lung cancers, blood cancers, myelomas, and they've passed away already by cancer and we get this added and i'm confident we will. >> and let's move on to another topic, the last couple of days the of the cross, this wasn't made. it was part of the rubble, standing within the rubble and ended up stng upright and became a symbol of hope and i remember that distinctly and the priest going down there and the firemen and i remember stuff animals placed at the base of that croft. and there's an atheist group that wants to sue to have it taken from the memorial. >> what have we become? a small group, trying to use 9/11 to gain exposure and popularity and where have we

come? that cross was symbolic for hope, for strength and for somebody laboring like me who worked there, during the darkest hours of this country, that cross, that meant something to all of us who worked on it so for anybody to make such a fuss about that, they need to get their heads examined. >> and there are some who say, remove that cross, and they win. who is they? >> i don't know, but, i don't see that cross getting removed. i really don't. and again, it's such a small group of people that are just using this to gain exposure. >> and last but not least, they want to remove the name ground zero from the the area, and what do you think of that? was there any doubt in your mind, not in mind, but any doubt in your mind that that was ground zero. >> again, what have we become? ground zero will always be ground zero, considering new york and people in lower manhattan and those 0 worked on the pile. you can name it whatever you want.

if i visit it, it's ground zero. i lost a foot and people became sick because of heroic actions, i don't care what you name it. it's always ground zero and it's going to be remembered what the country is remembered for. on 9/11 we came together at ground zero for the better of this city and the better of this great nation. name it what you want. it's ground zero to us. >> i think it's needs to be ground zero to all generations that come after us, when they go back and say, hey, something a very, very terrible happened here and something that changed america forever. >> sure, absolutely. i agree and again, the history will show, that this was ground zero and it doesn't matter what they call it. >> john, thank you. >> thank you, sir. >> thank you for your work, appreciate it, 9/11 ground zero. >> thanks a lot. we're on the verge of an economic meltdown, why do democrats keep voting no on every single plan that goes up for a vote? one of those congressmen joins us next. ining high ♪ ♪ you know how i feel

♪ sun in the sky ♪ you know how i feel # hd video cam for lectures. game pad. have you considered this by motorola ? it's got all that and more than 200,000 apps. technology to learn and play on-the-go. only at verizon. get the latest smartphones like the more powerful than ever droid x2 by motorola. buy one for $199.99, get another one free.

. . >> eric: welcome back everyone. we've been telling you all morning that lawmakers seem to be close to a deal, but no vote. california democratic congressman voted against john boehner's plan from the house. >> good morning, nice to be with you. >> gretchen: thank you so much. you're inside the beltway, what he is going on this morning? >> i'm the not sure anybody can tell you exactly what's going on, but we need to solve the problem and unfortunately, it's a manufacturing problem. we did not have to have this crisis, but here we are in the past, 74 times the debt limit has been raised without a crisis, but somebody wanted to have a crisis so we do. what are we-- >> who are you blaming? >> well, it's not a matter of

blaming. the republicans clearly set out early on to try to use these various leverage points to push in place their policies and they've done it four times and this is the last of the four and i expect we're going to see this again in the future. >> congressman, couldn't the democrats have done something a long time ago. by last counts, it's been months and months and months since that happened? >> the budgets are an outline, how you're going to spend your money. money has been appropriated, and laws passed and stated where the money's going to go. the debt has been built up over the last decade so we have to deal with the deficit, but we didn't have to have this crisis in this way and we need to be thoughtful about it. >> unfortunately, what we're seeing is last moment negotiations without really considering some of the impacts of what's going to happen. for our side we're very, very clear, we don't want to see medicare harmed. medicare is absolutely crucial to the senior citizens, the

disabled in this nation and-- >> i think everyone agrees with that, congressman, the problem is we don't have the money anymore and at some point the entitlements have to be looked at. and from john boehner, the other day, asking where your side of the aisle was. listen to this. >> i stuck my neck out a mile and i put revenues on the table. in order to try to come to an agreement to avert us being where we are. but a lot of people in this town can never say yes. it is time for the administration and time for our colleagues across the aisle, put something on the table! >> tell us where you are. >> how do you respond to that congressman? because the president never put anything on the table in writing. >> that's just not true. that's just not true. in serious negotiations. >> gretchen: i have not seen it, i have not seen anything on paper from the president. >> you have seen yesterday a

vote in which the democrats made a very clear statement that we would support harry reid's proposal. it was in writing on the table, and voted on, not one republican voted for that. the president has been engaged in negotiations more than any other president ever, on issues of this sort. he put on the table, a 4 plus trillion dollar proposal that included serious cuts, more than 3 trillion dollars of cuts and shared sacrifice, saying that the very wealthy in this country needed to share in solving the problems. >> gretchen: we all know congressman revenues are not a part of any deals discussed even though the president is still talking about it, but harry reid himself did not include revenue in his deals and the leaders of the democratic and the senate. >> well, unfortunately, we're now looking at an unequal situation in which the poor, in which those people who depend upon federal assistance to go to school, to be able to keep their job, and even seniors, now, appears as

though this latest proposal may go after medicare and i'm simply telling you that on our side of the house, and i think democrats and most of the public across this nation say, keep your hands off medicare and social security. yet, it looks as though the republicans are forcing us into a situation where the only deal will be one that will go after medicare and quite possibly social security. >> gretchen: right. >> for those of us and for the american public, they're saying no. >> gretchen: at some point, somebody's going to have to do something about those entitlements though because the frank fact is that the united states doesn't have the cash. i have to wrap it up, congressman, thank you for getting up for us on a sunday morning. and tea party representative blackburn voted yes on speaker boehner's plan at the top of the hour. [ male announcer ] this...is the network --

a network of possibilities. in here, the planned combination of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more amecans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites... f greater access to all the things you want, whenever you want them. it's the at&t network... and what's possible in here is almost impossible to say. but it's our job to make them say something interesting. so how about this weekend we learn some new tricks of the trade... then break out our doing clothes and get rolling. let's use some paint that helps us get the job done

in record time and makes a statement when we're finished. we're lowering the cost of a new favorite color. more saving. more doing. that's the power of the home depot. take your painting skills to the next level at one of our free paint workshops. on our car insurance. great! at progressive, you can compare rates side by side, so you get the same coverage, often for less. wow! that is huge! [ disco playing ] and this is to remind you that you could save hundreds! yeah, that'll certainly stick with me. we'll take it. go, big money! i mean, go. it's your break, honey. same coverage, more savings. now, that's progressive. call or click today.

>> good morning everyone, it's sunday, the end of the month. unfortunately and july 31st, i'm gretchen carlson, thank you for sharing part of your sunday with us. word after big break this morning in the debt debate. a possible deal that prevents default, but at what costs? the latest details are straight ahead. >> meanwhile, a deadly mid air plane crash into alaska, two planes collide and now, four people are dead and find out what caused the crash and how one guy was able to survive. >> and this mascot's taunting, enough to push a kid over the edge, junior oh, poy, a line drive.

oh, boy, "fox & friends" starts right now. ♪ welcome aboard, folks, a special edition of "fox & friends" for this very, very busy news day, live from new york, if you listen to harry reid yesterday afternoon you would think oh, we're a million miles apart. a lot of gloom here and 10:30 last night. he came out and announced that they had made significant progress between mitch mcconnell, the minority leader in the senate, and joe biden. and apparently, it was enough for harry reid to put off a vote he had planned for one o'clock in the morning to vote on the senate deal because another 12 hours can give him a little wiggle room to perhaps get something on paper. >> it isn't all that happy about it. kind of like little kids left

out of a discussion at school. that's the attitude. we don't know who is behind the talks, but when mcconnell and boehner came out and said we're close to a deal, folks, i think a lot of people were stunned at that point because there has been so much acrimony between the two parties. >> sure, let's look we're hearing they're talking about. but the the newest deal is going to entail a debt ceiling increase up to 2.1, 2.4 and like i said earlier, as high as 2.8 trillion dollars in a couple of tranches, but spending cuts to vb commensurate. the same amount or more spending cuts than the at the time ceiling increases and a couple of things that may or may not be included in it might be a balanced budget amendment and may not include a balanced budget amendment, but it will include a committee, steve, a committee that made-- >> a super committee. >> housing cuts and-- >> where are they going to be on that? does it say who's going to be on it? a lot of people would like to know. >> so then what the super

committee would do, they would try to figure out how to cut additional 1.8 trillion dollars and if there are not able to figure it out, then, there will be a trigger. and they'll either start cutting defense and/or medicare and if they don't make the cuts as well, then, at that point, they would send a balanced budget amendment to the states. so, there's something for both sides to want to get another deal done, a phase two. harry reid says that there's always been big questions about the trigger and that is what has caused some problems. >> the issue has been now for a week or so, a trigger, if the joint committee doesn't come up with its own, what should happen? and we've been hadding to say that we're-- if we don't arrive at the budget goals with the committee, then certain things should happen. the we've been willing to say that there could be a

sequestration, as long as it included revenue, there cannot be a trigger as long they don't turn their head away from american pooh who say there should be shared sacrifice. >> gretchen: the thing is, even if they solve the latest crisis it's been called the next couple of days, it really doesn't solve the long-term problems of this nation. and as far as funding these entitlement programs and that's what amy cramer, the chair of the tea party express, told us earlier. >> the debt ceiling is only a symptom of the bigger problem, the massive amount of debt that we have. so, just to cut, cut, cut right now is not enough. we want a permanent mechanism in place he so we don't find ourselves years down the road and anything less than that is not accessible, we have to do entitlement reform and this is a bigger issue, we can't balance the u.s. budget by cutting discretionary spending. >> and very important to understand what she's saying. she's saying, it doesn't

matter if you cut spending, if you're going to continue to raise the debt ceiling because eventually you'll find a way just to get that debt ceiling again. but the point is the last thing she says there, we have to find a way to balance our budget and really, that's it. that's the only way to start turning that 14.5 trillion dollar debt clock to start spinning it backwards by balancing the budget first, and letting the economy grow into, you know, a surplus rather than a debt. >> i have a crazy idea, let's only spend the amount we take in. that would be the balanced budget. >> gretchen: that's what we teach our kids. and that's how we all supposedly live in our lives, pretty much, right? >> the deal is we're asking congress to do that, but unless you get a balanced budget amendment for the constitution where they have to, they don't do it. >> gretchen: they don't. let's bring in tennessee congresswoman marsha blackburn and joins us now from d.c. good morning to you, congresswoman. >> good morning. >> gretchen: all right, so where do you know or what do

you know about what's going on right now? where are we? >> we know that it seems the more senator reid talks with leader mcconnell and speaker boehner, the more they're moving in our direction and gretchen, one thing we do know is that republicans, conservatives have changed the culture spending in this town and now, we're not hearing about tax increases, we are hearing about spending caps, a balanced budget amendment and making significant reductions in what the federal government spends. >> yeah, but you know, congressman, as people talk about what the republicans-- you characterized it as they're moving in our direction, but then you've got people on the left saying you know, the tea party republicans are holding the rest of the party hostage. but in reality, thanks to them, we're having this dialog today and we are closer to a balanced budget of sorts. >> you're correct. and we have a big tent. we have lots of diversity and opinions within our conference

and within our party. but the good thing is, we as conservatives have said, let's push ourselves to a fiscally conservative and responsible tract. and get this nation back to fiscal health. and you're exactly right, we don't want a deal of the day. what we want is a long-term solution that is going to put us on the-- the american people deserve to know the truth about the budget. we've been telling them that. we've said no more budget tricks, no more accounting gimmicks, we have to make certain that we are on our way to fiscal health. >> congresswoman, the boehner plan that before it included a balanced budget amendment wouldn't have passed the house and that's why it was delayed and then you guys added the balanced budget amendment and passes gets over to the senate and if this bill, whatever comes from the senate, whether it's reid, mcdonnell, whom ever, biden, if it comes back without a balanced budget amendment, would you vote for it? >> we're going to have to wait

and see what all is included in that deal, but what we do know is more people, there is bipartisan support in both the house and the senate for a balanced budget amendment. the american people by over 60% want to see a balanced budget amendment. you know, every year, i go to the floor and i offer 1%, 2%, 5% across the board spending cuts. we never get they will. it's important to begin to get them because that's how you give those hair cuts that keep this in place and make certain that we don't overspend. >> well, it's going to be a very interesting day of developments. we'll see if the deal is actually in place in the next 24 hours. congresswoman marsha blackburn, thank you so much for getting up early. >> thank you, gretchen. >> because the senate will have a vote this afternoon at one o'clock. >> now, some of the headlines this morning, four people have died after two small planes collided mid air near tracker creek, alaska. you're looking at one of the

planes, completely destroyed after it burst into flames. the other plane is damaged in the collision, but did not hit the ground. the pilot, 56-year-old kevin, the sole survivor says he surveyed the other plane by air and so no signs of life and no word what caused that crash. a flight from jfk airport, to the south american country of guyana, splits in two after landing and remarkably nobody killed in the accident. the caribbean airline flights, stopped short of a deep ravine and it was chaos with the late night landing, there were no rescue crews on the scene for a while and 30 people were hurt. none of the injuries life threatening. remember the two u.s. hikers, held in prison in iran, scheduled now to appear in court today. on the second anniversary of their arrest, and the lawyer for fattal, and bauer, both

say they are not guilty of spying, you remember there was also the third hieshg seen in the picture here, imprisoned with them. sarah shoushgsd released last year and will not return to iran for her trial. i wonder why? it was a heroes welcome in iowa this weekend. [applause] >> looking at the last soldiers from iowa's national guard to return from afghanistan. most of these men and women were deployed to afghanistan more than a year ago, as part of operation enduring freedom. and those are your headlines. always great to see those photos. >> and those headlines are smooth as butter in fact. >> speaking of butter, a lot of people could use some, sitting down to pancakes and waffles and rick reichmuth, they have once again a cow made of better. >> yeah, every year, that's

one of their things, people come to see the cow and the calf made of butter and then they have a special one every year and this year, in honor of the last flight of the shuttle, they've got the inside of the space shuttle and also, because they've had 24 different astronauts that come from the state of ohio it's not just about agriculture. john glenn, neil armstrong, and the wright brothers all from ohio. ttle ohio facts. >> and the current temperatures right now, the 70's and 80's across the central plains and humid as well. in the southeast, we have big thunderstorms yesterday and see that again today as the day heats up we'll see the storms firing. to the northeast, conditions are going to be quite nice, a much less humid day and temperatures are comfortable. across the west, significant monsoonal activity continuing, around the four corners and some of that moisture making

its way to california and nevada today. we'll see the thunderstorms again, great news for the folks out there. but the heat, as you look at today's high temperatures, is really the big story. we have the heat advisories again, building to the north. areas of nebraska stretching down to texas ap then texas heat this week is going to be extreme. it's been extreme, we've broken all kinds of records, and this week, temps in dallas pushing 110. so, unfortunately, that dangerous situation continues there. all right, guys, much more coming up, here in a bit from the state fair. send it back to you. >> you know that butter cow would last 15 minutes in dallas today. (laughter) >> that's true. >> thank you, sir. >> gretchen: he stands to make a fortune from tv interviews and book deals, but casey anthony has a different appearance first on her schedule. >> even if there is a debt deal on the table, the united states still might lose its triple-a credit rating. what does that mean for your 401(k). we're headed back to a

session. stuart varney is here next. ♪ [ male announcer ] a moment that starts off ordinary

can become romantic just like that. a spark might come from -- a touch, a glance -- it can come along anywhere, anytime. and when does, men with erectile dysfunction can be more confident in their abity to be ready with cialis for daily use. cialis for daily use is a clinically proven low-dose tablet you take every day so you can be ready anytime thment's right even if it's not every day. tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. don't take cial if you take nitrates for chest pain

as this may cause an unsafe drop in blood pressure. [ man ] do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache oruscle ache. to oid long-term injury eek immediate medical help for an erecon lasting more han 4 hours. if you have any sudden decrease or loss in hearing or vision, stop taking cialis and call your doctor rit away. [ male ancer ] ask your doctor if cialis for daily use is right for you. for a 30-tabl free trial offer, go to cialis.com. >> and washington is hammering out now what appears to be a tentative deal to end the debt crisis. how will this affect your

moola. if they reach a deal. will our 401(k) plans bounce back. >> steve: stuart varney joins us right now. good morning, stuart. you say if indeed a deal will be done. tomorrow the stock market will say, fantastic, go up and get a bounce in our 401(k). >> maybe, maybe it may be a relief. >> steve: a relief rally. >> of course, get a nice bounce, maybe. but i think it will be temporary because this deal as you have been outlining it, adds enormously to our debt down the road, which really makes our financial situation worse in the long-term. i think this makes a downgrade much more likely. now, and that's hanging over investors. they don't want this. they don't like this. so, i don't-- a bounce tomorrow, i think, would be temporary. >> lets me ask you this, we really didn't see any kind of a decline in the last couple of weeks. i mean, a precipitous one. maybe a 4% decline last week.

>> that's not panic selling. >> gretchen: that's not panic selling even though we were told it was debt again. and we didn't see a big drop. >> investors did not believe that on august 2nd or 3rd, if we don't get a deal that we'd default. they don't believe that. they know there's money available to pay the key bills. they know that. so, they took the market down 4%. that's not a big panic selloff, but then, on friday, we got absolutely dread feel economic news. we are on the verge of another recession. the economy has stalled. so you've got to chuck that into the mix, along with maybe a deal, a probable downgrade, and on the verge of recession, that does not add up to a huge run up in stock market, it points probably south in the longer term. >> steve: while a lot of people are suddenly paying attention to what's going on with the debt limit increase, so they don't really understand what would happen

if our triple-a rating would be downgraded, prance to d grade. >> not at that bad. >> steve: i've heard a couple of guys saying it's not going to double a. to d. >> let's get that straight. >> steve: if that happens, every home owner and household in america will effectively be paying more for money and impact everybody. >> that would be true in the event that we're downgraded from triple-a to d. we only get downgraded to d in the event of default. >> gretchen: right. >> and that's default on the debt, interest and principal. that is not going to happen. okay, let's be very clear, that's not going to happen. >> gretchen: everyone's made that clear at this point. i've got to get something you started to touch on on friday and fox and friends and that's compelling, were you talking about taxes and revenues and if all the income, if people making over $250,000 a year, even if they gave all of their money to the government, what

would happen? >> you bring in 900 billion in the first year, okay? 900 billion, but you would still be be left with a deficit of 750 billion dollars added to our outstanding national debt. remember, you're talking about confiscating every cent that anybody makes over $250,000. 100% tax rate. we'll take it all off you and you're still only bringing in 900 billion and left with 750 billion dollar deficit. raising taxes is not the answer, especially when you're on the verge of recession. cutting spending. long-term control of entitlements, that's the only way out of this thing, period. >> gretchen: he's fired up on a sunday. >> on a sunday morning. >> gretchen: and live on hannity tonight as well. 9 p.m. >> i am indeed. >> gretchen: see you tomorrow, or monday, we'll all be confused. >> steve: thank you, stuart. >> yeah. >> steve: great ahead on a sunday, a soldier accused of plotting another massacre at fort hood had a weapon of

choice, in fact, had two of them. we have the very first look coming on the street. spends it if you've got it or even if you don't. one company hopes that it will help buy them some more jobs. would you vote yes on that? we'll debate it. ♪ well, i wasn't "supposed" to need flood insurance, but i have it. fred over here chose not to have it. ♪ me, i've got a plan. fred he uh... fred what is your plan? do i look like i have a plan? not really. [ female announcer ] only flood insurance covers floods. for a free brochure, call the number on your screen. engine revving ] [ male announcer ] 125 years ago... we invented the automobile. ♪ and 80,000 patents later, we're still reinventing it.

♪ it's no coincidence that the oldest car company h the youngest and freshest line in the luxury class. mercedes-benz. see your authorized mercedes-benz dealer for exceptional offers on the e-class. ♪ just don't feel like they used to. are you one of them? remember when you had more energy for 18 holes with your buddies. more passion for the one ya love.

more fun with your family and friends. it could be a treatable condition called low testosterone or low t. come on, stop living in the shadows. you've got a life to live. [ male announcer ] so don't blame it on aging. talk to your doctor and go to isitlowt.com to find out more.

>> outrage in nassau county, new york, residents already pay some of the highest taxes in the country. a vote is set some night whether or not to use millions in taxpayers funds for a hockey arena and a minor league field. the hockey feem would pay no property taxes at all.

a sweet deal. and nassau county legislator, way wayne, jr. >> good morning. how are you. >> steve: we've been fine. your county is taxed higher than most of america and they're talking about to help this guy unload this hockey team, but the shady part is rather than wait till november for an election, they're going to do it tomorrow on a monday at the end of the summer. >> right. exactly, the first day of august, one of the weeks that in this country, most people are considering if not on vacation already. >> right. >> and we're doing this right now, literally in the darkness of summer as it were. >> and a special election is costing 2 million additional dollars a year, the county doesn't have. whose brilliant idea was it doing it tomorrow? >> the county administration, the county executive proposed is being august 1st and i sought to amend the legislation to put this on a national date of november 8th which is election day.

all the county legislature, myself included, on the ballot november 8th and we wouldn't have to have anything extra to have a battle question. instead, doing it on a monday in august and we minimize turnout and i suspect, do everything nassau county possibly can to calculate the outcome. >> tell us how much money is involved. give us the numbers and how much that's going to cost for the upgrade on the colosseum and how much the taxpayers are on the hook for. >> 350 million dollars for a new state of the art colosseum. a colosseum by the way, which is in terrible condition. no question about that. but 350 million dollars taxpayer money would have to be used to renovate the colosseum, and additional 50 million dollars would be dedicated towards ball field and ancillary uses. >> right now, that particular aging colosseum holds what, 15, 16,000? >> holds about 16,000, right.

>> steve: how many people show up for the hockey games. >> unfortunately the islanders have the lowest attendance in the national hockey league, 11,000 a game. >> eric: 350 million dollars are going to renovate it. where is it coming from, raise property taxes to pay for the colosseum? >> what the referendum would do would be to authorize a dedicated tax line in addition to the county tax, town tax, special district taxes. on one line you'd have a redevelopment line, which would actually have to pay out about 29 million dollars a year or the debt service, and that would be a separate tax and that would obviously be added to the overall property tax bill. >> what gets me, the guy who owns the team, is a billionaire, and could he certainly build his own colosseum, but instead, because he wants to get out of the hockey business, he's somehow talked the county into this cockamamie plan so he can unload the team.

>> in the six six to eight years, mr. wong had been part of what had been the lighthouse project. billions of dollars of private investment, no public money, private investment, that would have developed not only the nassau colosseum, but the entire what we call the hub area, surrounding area, would have been an economic development boom, quite frankly, for nassau county. providing potentially tens of millions of dollars worth of tax revenues and a state of the art colosseum owned by the public with no public input. with no public cost. unfortunately, the local zoning authority, defeated the white house project and instead of going back to the drawing board, we went to plan b which is asking the taxpayers for it. we'll leave it there. thank you very much. >> thank you. >> a soldier accused of plotting another massacre at fort hood had a weapon of choice, in fact, he had two of them exclusive, inside look next. and then talk about revenge, a tiny baseball fan taking his

revenge on the chief mascot. somewhere bob sag gat is rolling. >> ouch! >> ♪ by unleashing a complete killing force against fleasnd ticks. and not just adult fleas. what makes frontline plus complete is that it breaks the flea life cycle killing adults, eggs and larvae. and it keeps killing fleas and ticks all month long. that's why it's the #1 choice of vets for their pets, and yours. unleash a complete killing force inevery dose of frtline plus. you have arrived. sweet belt. e-reader for textbooks.

gps. hd video cam for lectures. game pad. have you considered this by motorola ? it's got all that and more than 200,000 apps. technology to learn and play on-the-go. only at verizon. get the latest smartphones like the more powerful than ever droid x2 by motorola. buy one for $199.99, get another one free.

>> oh, oh, boy, a slow mow replay. >> oh! >>. >> oh, my goodness. >> was that the shin. the boy boy brings a mascot to his knees in the strike zone. >> it is a strike zone. >> a minor league ball game, what character is it? >> does it matter. >> gretchen: a weird one. >> the ball boys were

retaliated the mascot cheated at a game of musical chairs and body slamming him. the video an instant classic on youtube. >> kids. >> oh, strike three. >> oopsy daisy. all right, let's do a couple of headlines for your sunday morning. we're learning more now about private first class nasser abdo, fox news confirming he had enough bomb making materials to make two bombs. he learned how to make bombs, guess where he learned it? from an al-qaeda manual he found online. he refused to stand for the judge and yelled out the name of major nadal hassan, the man in the first fort hood shooting. >> is the fbi close to arresting the famous hijacker, db cooper? they believe they're close. fingerprints from a new

suspect are tested and say it's the most promising lead to date. cooper as you remember, hijacked a northwestern airlines flights in 1971. jumped out of the plane, tens of thousands of feet over the state of washington and going 500 miles per hour and disappeared forever. the fbi won't say whether the suspect is dead or alive. >> forget about the television interviews, it looks like casey anthony may be head today a shrink. and sources say she'll be treated for mental health issues before considering going public and say that anthony was traumatized by the death of her daughter caylee and in solitary confinement for three years made matters worse. >> gretchen: funny didn't tell anyone about that. and no more ground zero nearly a decade after the attacks on 9/11. several new yorkers are calling for the historic name

should be dropped. construction workers working at ground zero say it symbolizes death and destruction as opposed to hopes for the future. the grand new memorial will be on the ten year anniversary of the attack and both president obama and former president george w. bush are set to attend. those are your headlines this morning. >> all right, let's go back out to the ohio state fair. if you're in ohio this is your big weekend, rick reichmuth has been there live all day and rick, i think you have a special winner with you now, right? >> yeah, we have a few winners. every year it's all about food at the state fair. well, sugar dale bacon, you guys came up with the bacon, they call it the bake-on. >> yes, they held the suggest dale bake-on at the ohio state fair. three competitions, appetizers, sides entertaining and ready bacon and main dish. >> so you won the appetizer. >> yes. >> tell me your name.

>> stephanie phillips, and the appetizer. >> chipotle bacon apair gus toss. >> i had one earlier and it's really, really good. congratulations. this was your main course? >> yeah, that was the main dish winner. brandy from cleveland, ohio, a bacon breakfast bowl, constructed out of bacon. >> and the grand prize winner, kevin harris tell me about the dish. >> bacon crusted chicken sauce, going to roll up the chicken breast and secure it with toothpicks. >> provolone, spinach, pruscuitto and then take it from here and i'm going to roll it here in my rub, after the rub, i went ahead and seared it and one made up for us and put my crust on it, and after putting the crust on it, put it in the oven here and when it comes out. while it's in the oven, saute'

green peppers and onions, mushrooms and bacon and i'll go ahead and glaze a little bit of sherry, and finished product looks like that right there. of course, finish with a cream sauce. >> how much did you win for this. >> $3,000. >> $3,000, where are you from. >> marion, ohio. >> congratulations. >> and people from all over the country computing in this. the grand prize winner, congratulations. >> thank you. >> steve, back to you. >> steve: all right. thank you very much, rick. rick showed us this morning some of the the great food to enjoy this summer and now it's time to set the ambiance and what better way to do that than to bring the comforts of your house inside, howes. here to show us how to create a beautiful outdoor space without breaking the bank, vern yip, and. >> how are you. >> steve: what a lovely table you've set outside, it would cost a fortune to do that. i love the fact you can do it on a shoe string and it looks

like a million bucks. >> this is not a table cloth, it's from a home improvement store, it's a drop cloth. >> it is. >> and less than $10 you've got a table cloth, don't have to worry about messing it up. and instead of the chairs, ceramic chairs, 60 bucks. >> kind of expensive. >> not really, you can bring it inside as a side table. >> multi-tasking. >> making your things work harder. >> of course, a great idea to add piz sar to your table. >> right here. >> this is just tile, again from home improvement store and cut tup and accent it well and-- >> a good idea. how much does a tile cost. >> usually between one and $15, depending on the tile. 12 by 12 inch square and cut it up. >> it's a good idea. >> and use it and tile your

bathroom later. >> maybe buy some tile that goes with your place setting and goes where you put it. >> this is an idea i love. instead of spending money on flowers for center piece, buy some bedding plants and use them for the party and when you're done for the party and entertaining, transfer to your yard because people spend a lot of money for the summer buying plants for the yard and why not make the multi-tasking. >> i need to buy the juniper, it would probably not be a good center piece. >> if you didn't want to see the person across from you. >> the in-laws are coming over. >> yes, how about the juniper. >> all right. >> now the other really good thing is right now, is sort of the best time to be buying things for the outside. because things are on sale. >> on sale, sure. >> yeah, so, all of these lanterns are about 60% off right now, and these are for restoration, and of course, something that i think is really great, summer is the time that even people who don't normally read a lot maybe open up a book and bring

some of your books from inside of the house and put them on the table and great covers, they add to the decor and great conversation starters. >> plus, if the conversation around the table gets really dull, just pick up a book and start reading it allowed. there you go. >> all right. never a dull moment, right? >> never, vern yip from hgtv's design program. a great idea. >> thank you. >> you use use the canvass and not one of the blue tarps. >> the blue tarp maybe not so much. very good. interesting stuff. >> how you can do it, looks like a million bucks, gretchen and eric. >> eric: yeah, and there's no paint on those tarps. >> steve: unless you're going to have a paint party. >> gretchen: good idea. we are going to take a little bit of a turn on topics here because we're going to explore this question. what if teens have sex before their legal age, should they be labeled sex offenders the rest of their lives? we'll talk to a couple of 15 years, former high school sweethearts who are living

that life right now. >> both sides are screaming, is either side listening? juan williams with interesting insight why our debt debate quickly turned into debt disaster. ♪ and i will bring floor care justice down upon it. oh. please sign that card for carl. ♪ call 1-800-steemer but i did. they said i couldn't fight above my weight class. but i did. they said i couldn't get elected to congress.

but i did. ♪ smetimes when we touch ha ha! millions of hits! [ male announc ] flick, stack, and move between active apps seamlessly. only on the new hp touchpad with webos.

consider this: over 70% of firefighters are local volunteers... these are our neighbors putting their lives on the line. and when they rely on a battery, there are firefighters everywhere who trust duracell. and now you can join with duracell to help. just buy specially-marked packs & duracell will make a battery donation to local volunteers. these days don't we all need someone to trust...? duracell. trusted everywhere.

>> after months of bigger debate. we have the debt deal and the white house and republicans have agreed to a compromise, something they've been calling for for weeks. >> it's time to come together for the compromise, and it's what the american people want and that's what we need to do. >> time pour results. time for compromise on behalf of the american people is now. >> the american people are frustrated with us, they want us to come together and make -- reach an agreement. >> but does congress really want a bipartisan agreement or are they just desperate for solutions. juan williams, the contributor to the new book, "muzzled". >> we're close, a situation where we're talking about how to enforce the deal. the democrats have conceded on a major point here, which is that the mechanism that would be in place, would not require

automatic tax hikes, if there's no deal, that to the contrary what they're saying, we would allow everything to go forward in terms of cuts on the basis of what the independent commission recommends and if the commission recommendations are not taken up by the congress-- >> juan, i've got to stop you, because everything i'm hearing senator reid said, he threw that word in there and threw revenue in there in his conference last night and you're talking about mcconnell, biden and possibly boehner new deal and talking about that deal, how do you know there's no revenue snuck in there halfway through this deal? >> well, you know what, eric, at this point, everybody is fly-specking the deal. there's not going to be anything you don't know snuck in there and you described it, and this is interesting to me, this is a point where now everybody wants to know exactly what's in it, there's going to be no surprises

because the time is so limited there can be no last minute people running away saying i can't accept the deal. boehner, mcconnell, have to deliver the republican troops, reid, president obama have to deliver the democrats and in order to get this deal done, they are holding hands and jumping over right now. >> it's the bait and switch, right now, my friend. you and i talked about it a lot, it's a bait and switch. sent the deal over from the house, to the senate. the senate turned it around and they're going to send a deal back without the balanced budget part of the deal which we both know, you and i both know, the only reason why it passed the house the first time was because it included balanced budget so when it comes out balanced budget, the democrats and the house are going to make this thing pass, you and i know it, juan and therefore eliminated tea party and fiscal conservatives out of the mix. >> not at all, eric, not at all. there was no chance the balanced budget was going anywhere, that was k.

b kabuki theater. what you're seeing is an effort, i think, a winning effort by republicans not democrats, eric, republicans who have said there have got to be serious cuts and we're not buying into tax hikes and not going to see tax hikes in the deal that goes through on bipartisan basis. i think republicans can claim the victory and you're screaming bloody murder. >> i'm going to keep screaming bloody murder, juan, the book "muzzled", how are you doing. >> eric, af looked at the book and americans so often feel they can't say what's on their mind. too often said shut up, you're a crazy right winger, you're a crazy left winger, and i'm finding around the country talking about it, here is what's really on my mind, it's not that i'm all the time left wing, all the time right wing, i'd like to be able to

negotiate, to talk to people in the way that everybody's frustrated with the way things are going in washington in morning. why can't things happen for our country why didn't we solve the problem. >> that's what muzzled is about, and go out and buy the book. >> thank you sir. >> they were two high school sweethearts, should they be labeled sex offender for having sex before the legal age? this couple will be here next. a security policy come to go an airport near you. tsa agents can single you out for questions. and worked for small countries like israel, what about big countries like ours. your tweets and e-mails coming up.

>> got some quick headlines for you on this sunday morning. joint chiefs chairman admiral mike mullen is in afghanistan today, warning u.s. troops to watch out for increased violence during the holy month of ramadan. already today, there's been a homicide bombing outside fleet headquarters in the southern city of lashkar. it killed at least 11 including a child and hundreds gather in cedar rapids, iowa, watching the implosion of an old parking garage. it went down in seconds and was demolished to make way for a new convention center put smack dab in the middle.

gretchen, over to you. >> gretchen: they're high school sweethearts, fell in love and got married. not quite the fairy tale ending. because when he was 19 years old frank rodriguez was charged with statutory rape. the victim, his future wife, nicky prescott was 15 years old at the time under the legal age of consent. despite their mutual love, rodriguez was accused of breaking the law and guilty. and 15 years later he's still forced to register as a sex offender. joining me live from austin, texas with the story, good morning to both of you. >> good morning. >> gretchen: so, if i'm correct in assuming that both of you feel that the laws in texas are out of line with common sense, is that a correct assessment? >> yes, that's correct. >> so, if we go back in time, the two of you were high school sweethearts, you were dating. the intimate relations that you had were consensual, but then, frank, you were left with having to respond to

authorities and were you told to plead guilty instead of what? >> instead of going to prison for two to 20 years. they told me it would be -- it would come off my record in seven years. >> gretchen: in seven years. >> and a choice-- but it never happened. >> gretchen: so, you decide today plead guilty so that you could stay with your eventual wife and you now have four children together, but that means you're on the sex offender registry list, right? nicky, as a mom married to a man on the list, how is it affecting your life. >> you're second guessing, wondering what people are thinking, you're out in public, people are staring at you, you think have they seen him on the registry, are they going to say something? and neighbors with children, you know, our girls are getting older, wanting to have

sleepovers and their friends coming over. i worry all the time about their parents seeing him on the registry, not knowing the situation. and saying something to our kids or you know, without being aware of what, what the real story is behind it. >> gretchen: frank, you say that after this happened to you, you couldn't find a job, your hopes of going to college were dampened, you can't join the army and now, in present day li, you can't coach your kids soccer teams, right? >> that's true. >> gretchen: so, you're hoping for a change now, that texas will modify its sex offender law. nicky, tell me about that. is it going to take place in september? >> it goes into effect september 1st. we're very optimistic, we're working with an attorney to try to get the petition to the courts and hopefully he'll be able to be removed from the registry. it will still be on his reco

record, unfortunately, i don't think there's anything we can do about that, but just to have him off of that registry, not have him on there will-- >> of course. you know. >> such a relief. >> gretchen: we want to make it clear, both nicky and frank, that you don't disagree with the registry in general, you don't think it's a bad thing. >> right. it's a good thing. he it needs to be in place. as a parent, it's a good tool to have. it's just that he, he shouldn't be on there and there are thousands of other men on there, in the same situation consensual high school relationships and they shouldn't be on there, either. so-- >> and it's very-- it's a very unusual and painstaking situation for the two of you, you've been together all these years later with four children of your own. i understand your story is going be to be told in the upcoming issue of marie' claire magazine.

>> right, the august issue. >> gretchen: keep us aware here at "fox & friends" and we'll continue to follow your story. nicky and frank rodriguez, thanks for your time this morning. >> thank you. >> gretchen: what do you think about that? e-mail us or tweet us, let us know. tea partiers who were elected in droves to stop spending, so if john boehner works with the president to lift the debt ceiling, does that put his job in jeopardy? we will he report and you decide. he was surrounded by rebels and pretty much everybody thinks he's a nut. how can a mad dictator win back the world's support? gaddafi has a pr plan. gaddafi has a pr plan. ♪ captioned by closed captioning services, inc.

our girl's an architect. our boy's a genius. we are awesome parents! biddly-boop. [ male announcer ] if you find a lower rate on a room you've booked, we won't just match it. we'll give you $50 towards your next trip. [ gnome ] it's go time. i don't know. the usual? [ blower whirring ] sometimes it pays to switch things up. my - what, my hair? no. car insurance. i switched to progressive and they gave me discounts

r the time i spent with my old compan saved a nch. that's a reason to switch. big savings -- it's a good look for you. [ blower whirring ] [blower stops] the safety was off. out there with a better way. now, that's progressive.

financial advice and we get near, apparently to a debt deal. >> good to be here. two days away, from -- we have heard, then -- debt-ageddon, and, now it sounds like there is a tentative deal, according to harry reid, last night, shortsly after 10:00, he said significant

progress has been made, and, now we are understanding, from mike emanuel, who is our congressional correspondent, and ed henry, who is our white house correspondent, it sounds like, the new deal will not be a short-term deal, it will be big enough to get the president past his re-election campaign, and, it sounds like it's on par with 2.1 to $2.4 trillion, worth of spending cuts, and all of them will have to be matched, dollar for dollar and if they are going to jack something up they will have to find a cut someplace else. >> a lot of people will say, this is just a band aid, folks, because it is not getting into the heart of the matter, this entitlement program and the cuts would be in in discretionary spending, a tiny piece of the pie. but you have to know, what the reporting says about going past the 2012 election, what the president was most definitely asking for, as they got together in the last couple of hours, because he doesn't want to face it again, before, he goes up for re-election. >> and, two of the major

hang-ups in whatever bill that will come from the senate, and/or the white house, back to the house which it has to be approved by the house as well are the trigger, very important, what will constitute the trigger and how will it be triggered and what happens after it gets triggered. and the other one... >> trigger talk! and the balanced budget amendment, which made it possible to pass the house first time and comes back without it, they'll have a hard time passing the house, whether or not it goes past the presidential election of 2012. trigger... meaning, if they don't make enough cuts, to commen commensurate, they have to trigger mandatory cuts. >> whether or not it would be... medicare is the question. >> again, where they go depends on which side of the aisle you are sitting on and whether you like him or don't like him. >> sure. >> all right, earlier we spoke to a congressman, a democrat from california and these were

his thoughts. >> the republicans clearly set out early on, to try to use the leverage points to put in place the policies an unfortunately we are seeing, last moment negotiations without really considering some of the impacts, of what is going to happen. on our side of the house, and i think democrats and most of the public across the nation, say, keep your hands off medicare and social security. >> well, let's bring in a minnesota congressman to respond to that. >> how are you today. >> i know you voted against the boehner bill and when you hear congressman garamendi saying most americans don't want to touch entitlement programs of focus an social securid social do you say to that. >> we have to find a solution that solves the problem and we have to protect or credit rating and cut more than we spend and we have to put a mechanism involved in there, for future

spending, as -- in my opinion has to be tied to debt to gdp ratio and we have to put in a balanced budget amendment and the reason is future generations can continue on with the american dream and we can find a solution to the problem. i don't want to get involved with gimmicks and get with beltway accounting. i want to solve the problem and then i want to make sure there are future generations, that they are protected . >> we have to do something about social security, and medicare, or else it is not going to be there in the future, because now, they are running out of dough. >> congressman, we understand that later today, members of congress are going to be briefed on this latest compromise, what are you being told? >> right now, it is pretty -- the cards are held tightly to the vest. but, one of the things we have to... i agree 100%, we have to protect our social security for our current seniors, though. we have to protect medicare, and we have to protect veterans benefits as well and we can do this. i mean, cut, cap and balance

bill did that and it also did a very important thing as well, it protected our credit rating. and, i'm asking senator reid to take the bill off of the table, 65% of americans get the bill, they like the bill, and, yet, senator reid tabled it. i'm asking him to take it off the able and allow for open debate an an open vote. >> what is this difference, though, cut, cap and balance, and you cut spending and cap the spending and you balance the budget, balanced budget amendment, if the... mcconnell plan comes back, or whatever, whatever they name it when it comes back to you, if it has a balanced budget amendment, won't that solve the problem for you? >> it has to solve the problem. what i looked at is, the spending in relation to our gdp. if we system keep on climbing and -- in relations to our gdp without having a mechanism to bend the spending curve back down we are spinning our wheels and getting right into greece and away don't want to do that. we want to protect the future for americans. >> do you have a problem with

the fact that this is now going to be carried over, past the re-election bid of president obama? does that factor into your decision at all. >> i'm here to solve the problem and i don't care whether it goes past the president's election or not. if a good, solid bill came from any political party as long as it solves the problem i would vote for that. >> yeah. that is exactly what everybody wants, and, so, we are wondering what will happen. and given the fact that you are in the majority in the house, from what you have seen and i know details are spare and sparse, do you think it would pass the house? >> i don't know. i have to be honest and i have to look at it and analyze the bill as deeply as i analyzed te other bills. >> there is speculation on who is in the meeting with joe biden and maybe the president and mitch mcconnell, is john boehner

a part of those meetings? >> i would have to assume that he is. but, i can't speak directly that he is. i certainly hope he is, he's the speaker of the house. >> let me be clear, you voted no on the first, original boehner bill. did you vote no on the amended one as well? >> i had a big problem in it originally with spihis bill, because of a balanced budget amendment associated with it. balanced budget amendment was brought into it but it was brought in with in the super congress and i wanted to see that cleared first and then... >> two no votes and what... >> yes. >> i'm getting at, what would have to be in this version to get you to vote yes, because it appears fwlensed budget amendment was in the second version of the boehner bill. >> it was but it was in the super congress portion of that. if it had been approved first, a balanced budget amendment had been approved first and then we

talked about cuts, then i probably could have gone with it but it wasn't. it was inside the super congress. but, it has to solve the problem. that is the mainline. >> exactly right. all right, congressman, thank you very much. we know it will be a busy day on capitol hill, thanks. >> thank you. >> now the rest of your headlines for a sunday at this hour, investigators are interviewing the sole survivor of the mid-air plane collision in alaska near trapper creek. 4 people died after one of the planes hit the ground and burst into flames and the other plane was severely damaged in the collision and did not hit the ground and the pilot, 56-year-old, said he surveyed the other plane's wreckage from the air and saw no signs of life and landed in anchorage and the names of the victims, not yet released. a flight from jfk airport in new york city to the south american country of guyana, split in two after landing, remarkably, though, no one killed in the accident. the caribbean airlines flight stopped just short of a deep ravine before breaking apart,

chaos after the landing because no rescue crews showed up for a while. and 30 people hurt and none of the injuries life-threatening. does nancy pelosi hold a grudge against her replacement? >> he didn't have the votes, he chose to go to the dark side. let's bring... he chose to go to the dark side. >> sound like "star wars" to you? john boehner is more like dark vader because of his support of the tea party and later she called on her fellow house members to end the theater of the absurd. congressman charlie rangel, who was censured for not paying taxes finds himself in another controversy, the "new york post" says he secured a $282,000 federal grant for the greater harlem chamber of commerce to help small businesses, but it turns out the harlem chamber used the money to send

executives on a trip to the caribbean and buy a $70,000 web site that no longer works. as one harlem banker put it, not one loan was given out and not one business was saved. those are your headlines. >> i wonder if they went down to charlie rangel's villa he never paid taxes on. >> i don't know. that would have been convenient. >> you read those headlines and practically sang them, gretchen. >> sang 'em? what is reich reichmuth doing? there are things going on at the ohio state fair, i know that. rick. >> rick: not by me. no fears for anybody. but we do have the all ohio state youth choir here and they'll sing for us in a second, let's talk about the weather. there's a lot going on especially across parts of the plains and the heat continues and dallas, you have 29 days of temperatures over 100°, the second highest all-time streak and you will break the streak, probably, 42 days, by the time

we're all said and done and current temperatures, you can see how hot it is and look at the satellite/radar picture, it is extremely humid along with that. we have heat advisories across the plains and the southeast because it is hot and humid that's day heats up, we'll see thunderstorms again and the northeast, including here in ohio, looking flies for the d-- the day today and the rain showers, around the four corners and the moisture making its way into california and nevada today, as well and they certainly can use the rain, but look at the high temperatures for the day, you can see the heat is baking the plains states, 90s across much of the dakotas and we'll be in the triple digits in texas, 104° in dallas and by the time we get to tuesday and wednesday we might be pushing 110°, very exhausting heat after you have been dealing with this for such a long time. one last quick story about the weather, the tropics well, had tropical storm don yesterday, and, now we have what will likely become tropical storm emily within the next couple of

days and anywhere in the gulf of mexico and along the east coast needs to pay attention to this one. could be dealing with a storm by a week from now around the u.s. and some of our models show potentially a hurricane around puerto rico, by the time we get to the day on wednesday. and we'll continue to track that as well, and right now we'll send it back to you in the studio and in a second, guys, more from the choir. >> thank you very much, rick reichmuth, live at the ohio state fair. >> turns out the grass is not green on our side of the fence, illegal immigrants from mexico going around and turning back and they say the job market here stinks. ann coulter weighs in on that. >> and tea parties elected in droves to stop spending, and john boehner works with the president to lift the debt ceiling, does that put his job in jeopardy? we report, you decide. >> but as advertised, to ohio for the all-ohio state youth fair choir. >> ♪ ♪ america ♪ america

♪ god shed his grace on thee ♪ oh, beauty for spacious skies ♪ ♪ for amber waves of grain ♪ for purple mountain majesty ♪ above the fruited plains ♪ america ♪ don't... [ mom ] one of the challenges for kayla being gluten-free is actually finding choices the whole family will love. five flavors of chex are gluten-free, including the honey nut flavor. and it's nice for me to be able to syes" to something that they want to eat. [ male announcer ] chex cereal. five flavor gluten free

to something that they want to eat. a vacation on a budget with expedia. make it work. booking a flight by itself is an uh-oh. see if we can "stitch" together a better deal. that's a hint, antoine. ooh! see what anandra did? booking your flight and hotel at the same time gets you prices hotels and airlines won't let expedia show separately. book it.

major wow factor! where you book matters. expedia.

>> gretchen: new information right now, on the debt dealings on capitol hill, reports coming in, saying that senator mitch mcconnell is close to being able to recommend an agreement to republican lawmakers, and, that it includes no tax increases. >> steve: mark thiessen is a former speechwriter for george w. bush. let's talk about john boehner. has the right -- have the conservatives in the republican party, have they lost confidence in their leader? >> i don't think so. at all. look, he's winning, the tea party is winning and if you look at the outlines of the deal coming out right now, speaker boehner set out a couple of parameters for any deal and one, had to be a dollar of every spending cuts for every dollar of debt limit increases and no new taxes in it and the deal coming out now is exactly along those lines and i'll tell you something interesting, senators rob portman on the senate floor, last night announced his office -- the former director of the office of management and budget and, if you follow the boehner

construct of cutting $1 of spending for every dollar you raise the debt limit you balance in ten years, okay? and, if the deal follows the boehner construct and continue to cut a dollar of spending for every dollar of debt limit we raise, we will balance the budget in ten years, this is a huge, huge victory if it happens. >> gretchen: it is interesting, the president less than a week ago said you had to have increased revenues as part of the deal and that it had to go past the 2012 election. and, it looks like he's going to get the second thing. because, our reporters on the ground are reporting that they are going to extend this past the election, so, it seems like he won on that point, correct. >> that's true, let him have the point. it is fascinating, you know, the -- david axelrod, the campaign chief the other day said this is a definitional fight he's winning and holding the center and the republicans are seen as on the extreme and if that was was true why wouldn't he fight

it in 6 months, it is telling he wants to put it through the next election and look at the polling, the last two months his support among independents collapsed, and for the first time, n.s, majority of independents disapprove of his job rating and if he was winning the debt limit fight it wouldn't be the case. >> steve: at one... >> eric: at one point during the back and forth, john boehner himself said, look, i even allowed for revenue increases which is a definition of more taxes. and, all the most at that moment the fiscal conservatives in the house, said, wait, i'm not sure i'm on board and that is why some of the vote delays on the boehner plan happened, right? >> well, sure, but, first of all, it is not $800 billion in tax increases, $8 billion in revenue increases, which comes from a system that is a big distinction, when president obama demanded $400 billion more, it would have retired the t -- required tax increases, and i

said it is like ronald reagan walking away from gorbachev in the nuclear deal. >> gretchen: and people speculated it may be the end of the speaker's speakership, you think he'll come out of this more powerful. >> absolutely. he led the troops, a very, very strong... sending a strong message to the senate and even the difficulty he has had in passing his bill, last week, sent a message to the senate, of how hard it is to pass something through the house and raises the bar for what will come out of the senate in these negotiation and i think he's set the parameters, and the final deal is going to follow those parameters and will be a big victory for john boehner. >> eric: mark theisen, thanks, the new deal will have no new taxes in it. >> thanks. >> gretchen: police say he was plotting a copycat massacre at fort hood and his goal to kill u.s. soldiers and it might sound like a big deal to you. why could the mainstream media k

care less and not report on it. >> eric: and when the deal gets done, neil cavuto knows the answers and the markets, coming up.

>> eric: mitch mcconnell moments ago saying he's close to be able to recommend a debt agreement to the republican lawmakers. that would include no tax increases. >> gretchen: mcdonacconnell say hopes it gets a significant percentage of republican

support. >> steve: neil cavuto joins us live, doing a road show in washington, d.c. good morning to you, neil. >> how are you doing. >> steve: okay, mitch mcconnell was asked, so is it $2 trillion and he apparently said we are looking at $3 trillion, a gigantic blank check, but that is not the $4 trillion deal the ratings houses have said it would take before they downgrade our debt. >> you hit the heart of it. whether it gets through the house and the senate, the ratings agencies laid out the map here, and if it's not $4 trillion we might be downgrading you anyway and it has to be $4 trillion in cuts over the ten years and the mix of the cuts better be sooner rather than later because the ratings agencies like most in this town know if you can't do something earlier to resolve early you are unlikely to show resolve later and the fact it isn't $4 trillion, the one voting bloc,

really they have to win over is the vote that matters, maybe comes monday or tuesday, if and when such a deal is cemented and those are the moody's and the s&p and the fitch investors folks and may not like the fact it's not $4 trillion and, i don't want to go on and on, the $4 trillion was the floor for the ratings agencies. not a high figure. >> gretchen: one other thing, i don't want to get too into the weeds but the information... >> i live in the weeds, gretchen, i live in the weeds. >> gretchen: we all have been, lately on the debate. here's what it says, the tax hikes are not on the table but he didn't use the word revenue. and i'm wondering if you think that that is significant. and, also, apparently, the balanced budget amendment, part of boehner-2, they will only get to vote on it. it will not be necessarily included in any sort of a deal. your thoughts on those two things? >> well, i think they are trying

to give each side a bone here. the chance to vote on that, it will not go anywhere, but you have to put it in, yes. it doesn't get passed and they can say at least we put it in there and the revenue, tax hike, you know, if it is taken out of the equation and there will not be a so-called trigger, in other words, if they are not meeting whatever cuts they have to meeting, come the middle part of next year, the second tranch of this supposedly kicks in, then there would be a spending trigger, but, the force would be on cutting spending, not raising taxes to make up the difference and would asuage house members but, not the senate members, i'm not sure, and, then everyone signs it and everybody goes home and says, we got what we wanted.

>> eric: for the life of me i wonder why we need a $3 trillion raising of the debt ceiling if we are cutting down $3 trillion of spending and the balanced budget amendment, we talked about it, it makes sense and i think that is why they got the far right, fiscally conservative republicans to sign on once that's in the deal and if it comes back without a balanced budget amendment, we're talking about $17 trillion, $18 trillion, in a couple of years. >> well, it will come back without a balanced budget amendment and how they deal with that reality i have no idea but, as you know, the reality in this town, the house loves it, the senate will not do it. that is what they have to argue over here and they might have... those who really, really want the balanced budget amendment are not liking the fact it is not in the final agreement, the tough teeth hooks in there, if they don't stick to the cuts they agreed to they'll be forcibly put in place without any corresponding tax hikes, to force them in place. >> steve: we have to go.

why do they need that? >> eric: if they cut $3 trillion out, why do they need a higher debt ceiling? i'm trying to wrap my brain around that. >> cover. cover. >> eric: that's off. >> gretchen: neil cavuto, thanks so much. have a great day out there. we'll see you at 4:00, eastern time. >> steve: thank you, neil, and straight ahead the whole world thinks he's nuts and how can he dictate or win back your support? muammar qaddafi has a plan, and maybe a pr makeover. >> gretchen: turns out the grass is not so green on america's side of the fence. no? illegal immigrants from mexico, are they turn around? because our job market stinks? ann coulter here, to weigh in. hi, ann. [ male announcer ] to the 5:00 a.m. scholar. the two trains and a bus rider.

the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be ♪ because your moment is now. let nothing stand in your way. learn more at keller.edu. our girl's an architect. our boy's a genius. we are awesome parents! biddly-boop. [ male announcer ] if you find a lower rate on a room you've booked, we won't just match it. we'll give you $50 towards your next trip. [ gnome ] it's go time.

>> steve: break news on this sunday morning, as we reported, senator mitch mcconnell saying moments ago, a deal on the debt is that close. >> very close, we had a good day yesterday, the vice president and president called me and the president talked to the speaker as well, and, they understand that with the republican majority in the house and a very robust republican minority in the senate, we have to come together. and i think we have made dramatic progress... >> steve: he says he hopes most republicans will support the compromise, and coming up we'll get ann coulter's reaction, according to ed henry our white house correspondent, it would take is through the 2012 presidential election, it would be on par, according to mitch mcconnell of $3 trillion, and he apparently will be briefing members of congress, later today. >> gretchen: let's see other headlines, we are learning more about private first class naser abdo, accused of plotting a second attack on fort hood, a

u.s. soldier and fox news confirm he had enough bomb making materials to make two bombs and he learned how to make bombs through an al-qaeda explosive manual that you can get on-line, and, he was already to -- all ready to go and at the court appearance he yelled out the name of major nadal hasan, the man accused of the first fort hood shooting spree and refused to stand before the judge. >> eric: the fbi offers a $25,000 reward to information finding selena katz, last seen monday night and dive teams will search for her, hope is fading, she'll be found alive. it is treated as a missing person's case. >> steve: the fbi may be close to solving the decades long mystery surrounding the famed hijacker d. b. cooper. fingerprints from a suspect are analyzed and they say it is the most promising lead to date. of course, cooper, famously

highjacked a northwest orient airlines flight in 1971 and later jumped out of the plane, mid-air, over washington state with a parachute and a whole bunch of ransom money and the fbi will not say if he's dead or alive. >> gretchen: could muammar qaddafi soon be "dancing with the stars"? the libyan leader looking to hire a new york public relations firm to help revamp his image. all right, so had he probably won't be dancing the rumba but is looking into a daily press release to paint him as a kind of moral leader and so far, no takers from the pr world. it is problematic when you shoot your own people. problematic to spin that, even with the best spin meisters around. >> steve: maybe he should host "survivor." >> eric: i get it now. gretchen, that was fantastic the way you did those headlines, almost like you are on a slide or something! >> gretchen: on a slide!

all morning long eric has been trying to find symbiosis between me reading the headline and what you are up to at the ohio state fair. what are you up to? >> rick: you have done a good job, so far, all morning long with that. we are now up at the top, at the top of the big, giant yellow slide and gives us a good view of the entire park and the entire fair and i'm joined by virgil strickler, the general manager of the ohio state fair and congratulations on this great event and thanks, we have been here all weekend and you have shown us a very verbs good time. >> we thank you and i'm very proud of our ohio state fair, i mean, we have great variety of everything, and i mean, you have seen the youth, you have seen all of the participation, by them and our band and livestock shows, horse shows and we are a great variety and have a great value and we're pleased with that. >> rick: tell me one thing that makes ohio different and makes this stand out. >> again, i believe we're the

strongest agricultural fair in the whole u.s. and i really believe that. and, it is all because we have the dairy, the sheep, all the varieties of livestock here, llamas and goats and we do three turnovers, during the fair, and it is large. >> rick: how many more days does it go on. >> until august 7th. >> rick: musical guests as well, and people want to find out about the the fair. >> www.ohiostatefair.com. >> rick: we're at the top of the yellow slide and you can -- we have a bunch of people including him, sitting there... including the cow sitting there. >> go ahead! >> rick: how big is the slide? >> 50 feet high and it has 106 steps, coming up. >> rick: here we go. time to go! guys, back to you!

>> gretchen: i'm envious, rick. >> steve: watching the cow go down, it was moo-ving! >> eric: the ohio state fair and back to breaking news and the debt. >> steve: apparently a report, lawmakers are close to a deal, on capitol hill and joining us here in the curvy couch is ann coulter, author of "demonic." good morning to you. >> good morning! >> steve: this is good news for a lot of people who have been worried about what was going to happen on tuesday. >> yeah, what i really like about this, does anyone notice how harry reid has been completely cut out of the process, just irrelevant and he goes out, to all the press conferences and everybody ignores him. >> gretchen: what do you make of the deal? does it satisfy you, something you would sign-off on? >> i'm surprised at how much the republicans are getting. i'll give them credit. they have 1/2 of 1 branch of government and yet no tax increases which was very important to the democrats and

one thing i don't think we should give up on, we should have the fight again next year, as... >> steve: before the election. >> i think around october, would be good. not because it is before the election but because it is hinging on what a future committee will do and a future congress will do and might do and, to give the president a blank check, here's $3 trillion, i think is a mistake, and i much prefer the mcconnell deal. >> eric: look at what mitch mcconnell characterized the deal. listen to what he said. >> we're looking at a $3 trillion package, a combination, discretionary, cuts, both cuts now, caps, over the next ten years, to hold spending in line, and, then, we are also going to be voting on a constitutional amendment, to balance the budget. now, that is important for the future, because, it will put some constraints on our spending habits, here in washington. >> gretchen: we know the

balanced budget amendment will not pass the senate, right? >> right, though it is fun to make the democrats keep voting on it. don't want to balance the budget. >> steve: how could they be against that! >> which means they should be voting on it constantly, clair mccaskill and other democrats, who tend to be moderate but you can't vote for a balanced budget amendment. >> eric: and a number of people on the left complained of the power and influence of the tea party members and without the tea party the republicans would not have been able to extract such a deal. >> right. and the dirty little secret of washington is, we know democrats want big government, they just wanted to spend and spend and spend and the percentage government takes, i would like to hear them say, under hypnosis, what they think the maximum should be. they want all of our money and will tell us what to do with it and the dirty little vet is, a fair number of republicans do, too, and want big government and their own big government, for example, prescription drug care

and no child left behind and we have our own establishment. and the tea partiers are paying attention to the idea that you cannot spend more than you take in, thank you, tea partiers. >> i want your thoughts on the latest attack, thwarted at fort hood, it would have been a second major nadal hasan, where 13 people died, two years ago. why is it the mainstream medias not really covering this arrest? huge news. a u.s. soldier... >> yeah. yeah. because they might flip an mention he's a muslim and they are afraid if they bring that up, it might come out and i wrote about the norway shooter in my column, this week, the "new york times" is aggressively lying about the norway shooter being a fundamentalist christian and even though my column doesn't come out until thursday i was the only journalist who bothered to read his manifesto and he doesn't use the word christian to mean what any american would mean and talks about christian atheists and agnostics and doesn't even believe in god and he means

nonmuslim, that is his big thing and doesn't want the islamization of europe and in the course of writing the column i checked to see... remember, nadal hasan, the last fort hood shooter and the president and the "new york times" rush out, don't jump to conclusion and the conclusion we were jumping to turned out to be true, he was outing allah akbar as he gunned down his fellow soldiers and the "new york times" had 7 articles on nadal hasan of the 7, only one mentioned that he was a muslim and that was the one that came out, that was written in -- a year after the shooting. when the cat was already out of the bag. a shocking fact. >> eric: and one thing the mainstream media has done with this shooter in norway, how many times did they call him right wing? how many times? >> gun loving, fox news-viewing. no, no, no. he's not... does not believe in god. stop calling him a fundamentalist christian.

>> eric: the ones they recommend we watch out for. >> bloomberg on the case. one of those tea partiers, worried about health care. >> eric: ann coulter, thank you so much. her new book, "demonic". >> gretchen: they said it would never happen, young obama supporters turning into republicans for 2012, why the experts could get it wrong? >> eric: what if taxpayers handed you a blank check, would you use the money to save a friend's job or the ozone layer? a government agency making that choice, for us. >> gretchen: i want to see rick on the slide again! looking good! you lost some weight. you noticed! these clothes are too big, so i'm donating them. how'd you do it? eating right, whole grain. [ female announcer ] people who choose more whole grain

tend to weigh less than those who don't. multigrain cheerios... five whole grains, 110 calories. multigrain cheerios... woman: day care can be so to save some money, i found one that uses robots instead of real people. 'cuz robots work for free. robot 1:good morning... robot 1:...female child. sfx: modem dial-up noise woman: flaws? yeah, um, maybe. anncr: there's an easier way to save. anncr: get online. go to geico.com. get a quote. 15 minutes could save you 15% or more on car insurance. a living, breathing intelligence that's helpi drive the future of business. in here, inventory can be taught to learn.

♪ machines have a voice. ♪ medical history follows you. it's the at&t network -- a network of possibilities... committed to delivering the most advced mobile broadband experience to help move business... forward. ♪ to help move business... forward. purina cat chow helps you well-being. we're all striving for it. nurture it in your cat with a full family of excellent nutrition and helpful resources. purina cat chow. share a better life. diabetes testing? what else is new? you get the blood, hope it's enough, it's-- what's this? freestyle lite® blood glucose test strip. sure, i'll try it, but-- [beep] wow.

yep, that's the patented freestyle zipwik™ design. it's like it-- [both] targets the blood. yeah, draws it right in. the test starts fast. you need just a third the blood of one touch.® okay. freestyle test strips. i'll take 'em. sure. call or click-- we'll send you strips and a meter, free. can't i just have these? freestyle lite test strips. call or click today. >> eric: on this sunday, now quick headlines, a replica of the wright brothers airplane crashed in ohio, killing both volunteer pilots. >> steve: they were test-flying the newly produced model when it went down near dayton. no word on why it crashed. both pilots had experienced flying, that particular type of plane. and, is the american dream now south of the border? it appears many undocumented workers think so. newly released numbers show about 300,000 illegals have gone back to mexico, since 2008.

because of mexico's recoverying economy and america's lousy economy. and, mexico's unemployment rate is 5% compared to 9%, here in the u.s.a. eric, over to you. >> eric: thank you, 9.2% unemployment an ongoing debt crisis and now, the situation could get even worse. the epa is looking to impose owe ze zone -- ozone emission requirements, from 75 to 60 ppb and while the change may seem small it is expected to have a big impact on u.s. businesses, a managing member of the john thomas capital management group joins us. tell us about this 75 to 60 ppb. what does that mean, in layman's terms. >> layman's terms, what is most interesting about it, is if you

look at the yellowstone national park it at times would not comply with the specifications. >> eric: we have to clean the air -- talking about taking parts per billion of pollution, out of the air, right? and, is that what we are talking about? >> yes. parts per billion and currently it is 75 and they are looking to reduce it to 60 to 70. >> eric: tell us, give us... how much will it cost businesses in america? >> the american businesses will pay on the conservative side, people think $20 billion, annually. but, more and more businesses are coming out with numbers, they estimated to be $90 billion. >> eric: this is what we really need to get to. the epa through programs like this, dangerous gases, penalizing businesses, for emitting dangerous gases is that not a cap-and-trade program, in effect? >> yes, it is. and, this regular relation was visited in o- -- '08 and is not

set to be revisited until 2013 and due to politics is coming up significantly early. >> eric: so, give us a sense of what the epa is going after here. they are going after pollution and mileage standards and do any of these things... what is the effect that american business -- on american businesses with all of these regulations? >> well, you are talking about a couple of things, you are talking about a bigger, stronger epa, right? with bigger budgets and more expenditures and any time you talk about that, you know, you are talking about that at a time when america is having trouble with jobs and, so, the epa, if they cut their budget by 1/3, it would create 1.2 million private sector jobs in america. so you have a growing epa, while our economy is struggling. and, then, adding $90 billion more annually, to expenses, to comply. >> eric: quickly, i don't have a lot of time. tell us the effect on energies prices.

we are already paying $4 a gallon at the pump, up or down given the regulations? >> the estimates of the egg glacial, everybody expects to add as much as a dollar per gallon of gas. >> eric: we have to leave it there, george, thank you so much, sir. >> thank you. >> eric: dozens of young people came out to vote for obama in the 2 tho008 election, but they be sitting out 2012 or worse for the president, they may be voting republican. a role in my, but with advair, i'm breathing better so now i can take the lead on a science adventure. advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator, workintogether to help improve ur lung function all day. advair won't replace fast-acting inhalersor sudden symptoms and should not be used more than twice a day people with copd taking advair may have

a higher chance of pneumonia advair may increase your risk of osteoporosis and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking advair. if you're still having difficulty breathing, take the lead. ask your doctor if incling advair get your first fl prescription free and save on refills at advaircopd.com.

>> steve: welcome back, in '08 barack obama had huge momentum with young voters and a new poll shows that that support may be dwindling. >> gretchen: according to pew research, in the -- the president and democrats owned a 32 points edge back then, among

millennials, in '08 and that is voters in their 30s and 2011, the margin is just 13 percent. >> steve: what is that about? joining us is fox news contributor and senior political analyst for the washington examiner, michael barone is in d.c. good morning. >> good morning, steve. >> steve: my children have a lot of friends who would fall into the millennial category and the reason they are no longer for barack obama is he promised change and what we have today is not what they voted for. >> well, it is change, steve, you know, the unemployment rate has gone up, we got the slowest recovery from a recession that anyone can remember since the 1930s, but, it is note change people hoped for and that is inchoate promised when you heard barack obama say we are the change we are seeking. whatever means to, and obama carried the under 30 vote, 66-32 and the millennial generation as

you pointed out on the screen with the in-depth pew research, came out heavily for the democratic party, as opposed to the republican party. but, in fact, we really have seen a big shift in that, and the shift has been mostly among white millennials who went from a 7-point party identifications for democrats in 2008, pew polling, to three points democratic in '09 and 1 point in 2010-2012 and, 11 points republican in the 2011 polling and that is a significant change and i think what we are seeing at work is something that i noticed at the -- right after the 2008 election and that is there is a tension between the way the millennials live their lives and the obama democratic program. the millennials live their lives, make their own ipod play list and don't go with somebody else's top 40, they construct their own facebook pages, and,

they are custom-designing their world. but, the obama democrats have been passing the stimulus package, big government spending programs, obamacare, and one size fits all, sort of mid 20th century welfare state solutions that were really initially proposed when everybody seemed to work on an assembly line and individuals were just one small cog in a very large machine. and these millennials don't want to be acog in somebody else's giant machine,they want to design the world for themselves and are beginning to see the obama democrats' program is not one that favors the kind of world they wanted. >> gretchen: it is an interesting assessment. you have to wonder if the college crowd would still, you know, get geared up and vote for obama because they have the ability to have him come and do campaign speeches and they coalesce together, more or less? >> well, you see a lot of people on colleges, of course, faculties tend to be far left

politically, and well to the left... >> steve: really? >> oh, yeah. but, you know, this is a different group of people on campus from what it was, four years ago. and, i suspect that democrats will find it hard to get that sort of inchoate enthusiasm they had going for them in 2008. >> great point. >> interesting. michael barone, you wrote about this in the washington examiner and we thank you for being our guest today. have a great one. >> thanks, good to be with you. >> steve: we'll step aside and we'll be back in two minutes. premiering the revolution by lg. the newest release with verizon 4g lte. the first phone pre-loaded with access to netflix's massive movie library. powered by verizon 4g lte for an unparalleled streaming experience. see how mobile entertainment was meant to be seen. only with verizon 4g lte. now get the revolution by lg for $199.99 and receive 3 months of netflix free.

>> gretchen: could it be the big day where we have a debt ceiling deal? if you listen to senator mitch mcconnell the answer to the question is yes. >> very close, we had a good day yesterday and both the president and the vice president called me and the president talked to the speaker as well, and, they understand that with the republican majority in the house and a pro bust republican minority in the senate, we have to come together and i think we have made dramatic progress. >> eric: no new taxes. a good one but it is a gigantic blank check. >> steve: we heard mitch mcconnell it is believed to be in the neighborhood of $3 trillion. that would include a two step process and the first, the boehner bill, $900 billion, and, then there would be the super committee, that would voted on all sorts of stuff and try to match dollar for dollar. it will be voted on in the senate